Tough measures led to record property tax haul

A senior official from the assessment and collection department said the record-breaking collection was largely due to these stringent enforcement actions

MUMBAI: Disconnecting water supply to major commercial defaulters and public shaming via announcements outside defaulters’ premises emerged as key enforcement tools that helped the Brihanmumbai Municipal Corporation (BMC) achieve its highest-ever property tax collection of ₹7,534 crore, 103.68% of its annual target, for FY2025-26.

Tough measures led to record property tax haul

For the first time, the civic body took aggressive steps to recover these dues, including attaching properties and seizing movable assets to ensure compliance.

A senior official from the assessment and collection department said the record-breaking collection was largely due to these stringent enforcement actions.

The official said the BMC disconnected water supply to prominent commercial defaulters, including Kamala Mills Building 1, Compound G, Ashoka Commercial Complex in A-ward (Colaba), and Sahara Star hotel in K-East ward near the Mumbai airport. “The hotel has moved the Bombay High Court against the disconnection of water supply,” the official said.

Public shaming via announcements over a microphone outside defaulters’ premises was another unconventional step taken by the civic body. The BMC also issued advertisements in newspapers and radio announcements to warn property owners about pending taxes.

“In one place, in G-south ward, in Parel, an embarrassed defaulter requested us to switch off the mic and agreed to pay his dues,” the official said.

The civic body also pasted attachment notices to properties, seized movable assets such as computers and furniture, and pasted recovery notices on premises to build pressure. “This created pressure as auction notices were pasted on premises and people became concerned about their reputation,” the official said.

Officials said strict recovery action was limited in the past due to prolonged litigation over the capital value system (CVS) introduced in 2012 for property tax calculation. Several writ petitions were filed in 2013, and the matter was pending in the Bombay High Court until 2022, restricting coercive recovery measures.

“In 2018, when the BMC attempted water disconnections, the high court had passed an order under the ‘Water for All’ policy, due to which water supply could not be disconnected. We now believe the policy does not apply to commercial properties, which allowed us to take action this year,” the official said.

Among the city’s municipal wards, the highest property tax collections were recorded in K-east ward in Andheri east, G-south ward in Parel, and H-east ward in Bandra east, the official added.