In a significant move aimed at cracking down on tax defaulters, the Brihanmumbai Municipal Corporation (BMC) has attached 18 buildings owned by DBS Realty in the Chandivli area due to outstanding property tax arrears amounting to approximately Rs 179 crore. The BMC’s latest action is part of its broader strategy to enforce tax compliance and recover dues from individuals or entities evading their obligations.
Tax Evasion and BMC's Enforcement Measures
The BMC has been increasingly vigilant in taking stringent actions against property tax defaulters. Under Section 203 of the Mumbai Municipal Corporation Act, the municipal body issues property attachment and seizure notices to those who fail to pay taxes. If the owed tax remains unpaid for 21 days after the notice, the municipality initiates the process of auctioning off the property to recover the outstanding amount.
In this case, the 18 buildings attached by the BMC are part of an under-construction Slum Rehabilitation Authority (SRA) project in Sangharshnagar, Chandivli, developed by DBS Realty. The tax arrears have reportedly been pending for several years, and after completing all procedural formalities, including hearings and addressing the developer’s grievances regarding the property tax bill, the BMC proceeded with the attachment.
According to a BMC official, property tax bills are typically raised once the land is deemed to be in a developable condition, which was the case here. The arrears, however, accumulated due to non-payment over a prolonged period.
BMC’s Aggressive Collection Targets for 2024-25
The BMC is taking aggressive steps to meet its ambitious property tax collection target of Rs 6,200 crore for the fiscal year 2024-25. As of February 12, 2025, the civic body had successfully collected Rs 4,823 crore, with the remaining Rs 1,377 crore yet to be collected before the deadline of March 31.
This proactive approach towards tax collection reflects the BMC's effort to shore up its finances amid the growing needs of the city’s infrastructure and civic services. To recover dues, the BMC has resorted to drastic measures in the past, such as auctioning vehicles. In one recent case, the BMC auctioned off three luxury cars, including a Honda Accord and a Toyota Camry, to recover about Rs 10 lakh, a small portion of the realtor’s outstanding Rs 14 crore dues. In an even more unusual case, the civic body had previously attached a helicopter to recover tax arrears from a defaulter.
Ensuring Ownership Verification Before Auction
Before proceeding with property auctions, the BMC is required to identify and verify the ownership of the assets to ensure that the process is legally sound. If there is any uncertainty about ownership, it could result in prolonged litigation, further complicating the recovery process.
A BMC official explained that while the process may seem extensive, it is necessary to ensure that the auction is not hindered by disputes over ownership. The civic body has been working on fine-tuning its systems to expedite these recoveries without legal hurdles.
Conclusion: Strengthening Tax Collection for Sustainable Urban Growth
The BMC’s recent move against DBS Realty and other defaulters highlights its increasing resolve to improve property tax compliance. As one of the largest revenue streams for the municipal body, property taxes are critical in sustaining Mumbai’s infrastructure, civic services, and urban development projects.
While the BMC's collection targets remain ambitious, its actions against tax defaulters, including the attachment of valuable properties, are a clear message that it will continue to hold developers and property owners accountable. As the city’s real estate market continues to grow, ensuring tax compliance and recovering dues will be integral to supporting Mumbai's future growth and development.