The BMC has attached 3,564 properties from major tax defaulters, valued at Rs. 2,237 crore, but no auctions have taken place in the past decade. Recently, the BMC appointed a specialized consultant to verify the ownership and valuation of 67 undisputed seized properties worth upto Rs. 355 crore. A report on the number of properties auctioned is expected within a month.
A private agency appointed by the civic body was assigned to identify additional immovable properties and investments, as well as valuing the assets of 67 defaulters, to aid in recovering property tax. These property owners owe over Rs. 355 crore, which includes a basic tax of Rs. 268 crore and penalties amounting to Rs. 87 crore. "In a meeting held last week, the agency was instructed to submit a report detailing how many properties they have auctioned and successfully completed the process. "We have given them a month's time to submit their report," stated a senior civic official.
Property tax must be paid within 90 days of receiving the bill. If unpaid, the BMC issues notices and can take actions such as disconnecting water supply, confiscating property, and auctioning assets for recovery. The last auction took place in 2012, but past auctions often failed to meet revenue expectations. To improve recovery, the tax assessment and collection department has decided to auction profitable assets, including non-movable properties of defaulters. Due to the complexity of gathering evidence against defaulters, the BMC appointed a professional institute to assist in this process.
Property tax is considered as the second highest sources of income for the municipal corporation, but revenue collection has declined in recent years. It is largely due to the exemption of property tax for residential properties up to 500 sq ft and the lack of a tax revision since 2015-16. For the financial year 2024-25, the civic body has set a revenue target of Rs. 4,950 crore from property tax, and to date, 30% of this target has been collected. Additionally, the civic body has intensified efforts to crack down on major defaulters to recover lost revenue.
Attached properties (since 2010): 3,945
Value: Rs2,237 crore
Auctions to be held: 67 seized properties
Value: Rs355.19 crore
Last auction held: 2012
Property tax earned in 2023–24: Rs4,856 crore
Target for financial year 2024-25: Rs4,950 crore
