BMC issues final notice to property tax defaulters, warns of auctions

Following the second notice, the auctioneer will publish details in newspapers before proceedings begin. The BMC has roped in M Junction, a private firm specialising in online auctions, to conduct the process. “This is happening after 30–40 years. The last such instance dates back to 1984, when a flat was auctioned,” Shankarwar added

MUMBAI: The Brihanmumbai Municipal Corporation (BMC) has served a second and final notice to property tax defaulters in four wards, cautioning them that their properties will be auctioned if dues are not cleared within seven days. Eviction proceedings will follow, with a private auctioneer already appointed to oversee the rare enforcement measure—the first of its kind in nearly three decades.

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Through the auctions, the civic body hopes to recover ₹8.53 crore from the identified properties.

“We issue a 21-day notice first, followed by a seven-day notice. Once that period lapses, the auction takes place on an as-is-where-is basis, and titleship changes hands. The winning bidder becomes the new owner, and eviction is carried out with police help,” said Vishwas Shankarwar, joint municipal commissioner of BMC’s assessment and collection department.

Following the second notice, the auctioneer will publish details in newspapers before proceedings begin. The BMC has roped in M Junction, a private firm specialising in online auctions, to conduct the process. “This is happening after 30–40 years. The last such instance dates back to 1984, when a flat was auctioned,” Shankarwar added.

Among the major defaulters is Shanti Sadan CHS in Chunabhatti (L ward), spread across 2,570 sq m, with dues of ₹3.28 crore, including taxes and penalties. In M West ward, the Housing Bombay Commissioner’s property in Chembur (Building No 1, Subhash Nagar), covering 3,073 sq. m, owes ₹2.70 crore.

A property in C ward, with residential units and shops on 1,648 sq. m, has dues of ₹2.24 crore. In Borivali’s R Central ward, Rajani House, measuring 624 sq m, has unpaid taxes and penalties totalling ₹31.81 lakh.

The recovery process begins with penalties imposed after the due date, followed by a demand notice of 21 days. If dues remain unpaid, a second notice gives seven more days. The next step is property attachment. In cases where defaulters pay at least 50% and issue a post-dated cheque for the rest, action is kept in abeyance.

If payments still do not materialise, the BMC proceeds with seizure, followed by auction after ensuring legal clearances. Notices are served both in person and affixed to properties, with adequate time for response.

The civic body has urged defaulters to settle dues within the seven-day window to avoid losing ownership. So far, the BMC has collected ₹3,094 crore in property taxes—41% of its annual target of ₹7,400 crore, to be achieved by March 31, 2026.