Mumbai: Tightening noose around property tax defaulters, the BMC has decided to auction their attached properties. An auctioneer will be appointed for the process of auctioning 2,875 properties worth over Rs 3,000 crore. The process will take two months, said the civic officials. Earlier, the civic body held an auction in 2012.
After abolition of octroi, property tax, which accounts for 24 per cent revenue, is the highest source of income for the BMC. According to the officials, mind-boggling property tax dues over Rs 15,000 crore are pending due to disputes and litigations in the last few years. So, after facing a severe cash crunch in Covid the civic body started cracking down on property tax defaulters by attaching their movable assets also, and disconnecting water supply and sewer lines. Accordingly, the BMC's assessor and collection department has attached 2,875 properties in the last five years.
Other than open plots and buildings, the department has also attached commercial galas, office furniture, luxurious cars and even household items from the defaulters. Currently, the auction of only non-movable assets will be carried on, which was delayed due to the pandemic. The properties that are not under dispute will be put for auction, said the senior civic official of the department.
Explaining about the process, BMC deputy commissioner Sunil Dhamne said, “We will be appointing an agency to conduct the auction. It will take a few months to complete the process.” The BMC has invited expression of interest from the agencies who are willing to conduct the auction. The agency will evaluate all the assets and hold the auction online, said another official.
