The Brihanmumbai Municipal Corporation (BMC) has continued its crackdown on property tax defaulters, proposing to auction five properties for failing to pay dues worth ₹14.62 crore.
With octroi gone, the corporation is banking on development charges from real estate and property tax as its the largest source of revenue. It had set a target of collecting ₹5,400 crore by the end of this fiscal, but as on March 25, has only collected ₹4,350 crore.
While officers said maximum recovery happens in the last month of the financial year (March), they do not want to take chances. With four days left for the month to end, the BMC has disconnected water supply to several properties and attached many of them across the city. It is planning to attach 13 properties for non-payment of tax worth ₹37.38 crore. Nine other properties worth ₹30.5 crore in dues will face disconnection of water supply and five others with ₹14.62 crore in dues will be auctioned.
In March so far, the BMC has recovered property tax worth ₹490 crore. Till February, the BMC had collected ₹3,860 crore. For the first time ever, the BMC had, last year, collected property tax of over ₹5,000 crore. The Assessment and Collection Department had collected ₹5,132 crore towards property tax in 2017-18 against their target of ₹5,402 crore; ₹285 crore more than the collection in the previous fiscal.
BMC gives 90 days to defaulters to pay property tax after serving them a notice. After that, it disconnects water supply. If owners do not pay even after their properties are attached, the BMC can initiate auction on the property within 21 days.
Property tax is charged on the basis of several factors including carpet area, location, nature and type of building and occupancy type.
The undisputed pending property tax amount for BMC over the years is around ₹3,681 crore. There are thousands of crores in other dues that have been challenged in court.
The BMC has appealed to people to pay property tax before March 31.