Mumbai: With the financial year nearing an end, the Brihanmumbai Municipal Corporation (BMC) has begun action on the property tax defaulters to recover tax dues. It has started to disconnect the water supply as action for failing to clear the long pending property tax despite serving them notices.
Recently, the corporation has started an initiative of sending drummers to the society and also made announcements in various areas to create awareness among citizens for paying their pending property taxes at the earliest.
But it seems that citizens have not taken the warning seriously. As a result, BMC in its first course of action disconnected water supply of three societies in F North ward Sion and Matunga East.
Under this action, BMC disconnected water supply of Seva Samiti building in Sion and Palai building in Matunga East. The administration is likely to intensify action if property tax defaulters fail to pay the outstanding arrears before March end.
General tax of the property taxes has been excluded by BMC on houses having an area of 500 sq ft or less. Meanwhile, the downturn of the real estate sector and other market factors have increased the property tax dues.
As a result, the annual demand for property taxes has decreased by approximately Rs 335 crores. The financial condition of BMC is thus going down and the property tax dues have increased.
“Action has been initiated against property tax defaulters and we have given enough time for paying them. We have already issued notices to 39 societies.
Recently, water connection was disconnected for 6 societies in my ward and more will be done if taxes are not cleared. Water connection will be restored as soon as the dues are cleared by defaulters.
Some are also asking for time for payment and we have agreed on that too but on a condition that they should issue us a post dated cheque of that amount,” said Gajanand Bellale, assistant commissioner.
As the fiscal year is near, the municipal corporation has started awareness drive in all 24 wards and on other side in some wards action is started against the defaulters.
After the abolition of the Octroi, property tax is the only largest source of revenue generation for the BMC. From around 4 lakh properties in Mumbai, the municipal corporation use to collect revenue of Rs 5,000 crore a year. In 2018, Rs 2400 crore was received as property tax.
But in 2019, BMC received only Rs 1700 crore, which is the corporation received Rs 700 crore less compared to 2019.
