BMC to auction defaulters’ assets to up tax collection?

MUMBAI: Spurred by low property tax collection, the Brihanmumbai Municipal Corporation (BMC) is set to crack whip by launching auction process and legal proceedings

MUMBAI: Spurred by low property tax collection, the Brihanmumbai Municipal Corporation (BMC) is set to crack whip by launching auction process and legal proceedings against defaulters.

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With arrears to the tune of Rs10,000 crore, the civic body will resort to auction of the property after sending notices to defaulters, stated a circular from the property tax department.

While most of the dues are for the period from April 2010 to March 2016, in a few cases they date back to 1993 with arrears pending till 2016. Some are due to drawn-out legal battles while others are cases of non-payment of dues.

Even after repeated notices and reminders, many establishments failed to pay the dues increasing the arrears due to lack strong action by the civic body.

With an aim to bring clarity and assure higher collection of the arrears, the BMC will send notices with a 21-day deadline.

After the expiry of the deadline, it will pursue the matter with caution letter followed by water and electricity cut.

“After the demand notices have been issued, we will send them a reminder and then an attachment notice. If they still refuse to pay, we will go ahead with auction,” said BJ Pawar, deputy municipal commissioner (assessor and collector).

If there are no takers during an auction, the civic body can buy the property.

Such notices were earlier sent as per whim and fancy of junior officers.

The civic body has now fixed the fifth of every month for notices to be sent and has put responsibilities from the deputy assessor to the municipal commissioner depending on the size of property tax.