Mumbai’s Defaulters on Alert
Mumbai: The Brihanmumbai Municipal Corporation (BMC) has taken a strict stance against property tax defaulters, issuing seizure notices under Section 203 to those who fail to pay their dues within the stipulated timeline. If the pending taxes are not cleared within the deadline, BMC will confiscate the properties and auction them under Section 206.

In a recent move, BMC has disclosed a list of 10 major defaulters with outstanding dues amounting to ₹222 crore. This marks the second consecutive day of action against large defaulters, sending a strong message across Mumbai.

Property Tax: A Crucial Revenue Stream for BMC
Property tax is a significant source of revenue for the BMC, enabling it to fund essential public services and infrastructure projects. As per regulations, defaulters are required to pay their taxes within 90 days of receiving the notice. If they fail to comply, BMC initiates a phased action plan that includes penalties and eventual property confiscation.

Why the Strict Action?
According to officials, repeated non-payment by certain large defaulters, coupled with their lack of response to notices, has left BMC with no option but to issue seizure notices. The outstanding amount also includes penalty charges for delayed payments. BMC has clarified that if defaulters fail to clear their dues promptly, their properties will undergo an auction process in line with the corporation’s guidelines.

How Does the Auction Process Work?
Officials have outlined the legal procedures involved in property auctions:

1. Pre-Auction Preparations: A search report, valuation assessment, auction process documentation, and asset tracing tenders are initiated.
2. Portal Listing and Notices: Details of the properties slated for auction are uploaded on the BMC portal, and notices are published in newspapers and on the BMC website.
3. Partial Payment Option: If defaulters pay 25% of their dues and provide post-dated cheques for the remaining amount before the auction begins, their properties can be saved from being auctioned.

For those who fail to adhere, the properties are valued, and advertisements for their auction are released. These steps aim to ensure transparency and compliance with legal norms.

Defaulters Span Across Sectors
The list of property tax defaulters includes residential buildings, commercial establishments, industrial units, open spaces, small-scale industries, government-owned properties, educational institutions, and malls. Despite repeated notices, many prominent corporate houses, developers, housing societies, and institutions have avoided paying property taxes for years, forcing the BMC to escalate its measures.

What Leads to Auction Notices?
The BMC provides essential civic amenities to Mumbai residents in exchange for property tax payments. However, non-payment by several property owners, including influential defaulters, creates financial strain on the civic body. Large-scale defaulters often ignore multiple notices, leaving the BMC with no alternative but to proceed with property seizures and auctions.

Though the auction process is a last resort, it is often prolonged due to the legal procedures involved. Experts suggest that defaulters act swiftly to settle their dues to avoid further complications, as the BMC is determined to recover its revenue efficiently.