Mumbai News: BMC Seeks ₹2,956 Crore Property Tax Dues From MMRDA, MHADA, Police, State And Central Governments
Mumbai: The top five government authorities in the jurisdiction of Mumbai, which have failed to pay property tax to the Brihanmumbai Municipal Corporation (BMC), include the Mumbai Metropolitan Regional Development Corporation (MMRDA), Maharashtra Housing and Development Authority (MHADA), Police Commissioner, State Government and the Central Government. As of April 30, 2025, these public institutions collectively owe the property tax of Rs 2956.23 crore to the municipal corporation.
Since Octroi was discontinued, property tax collection has been the biggest source of revenue for the BMC. Although the BMC made a record-breaking property tax collection in FY 2024-25, it cannot take strict actions against government bodies to ensure the outstanding amounts are cleared, as it can with private properties, including housing societies.
As per the data accessed by the FPJ from BMC’s Assessment & Collection department, MMRDA tops the list of property tax defaulters with a total of 122 properties and a total outstanding of Rs 1494.49 crore. The total amount includes outstanding property tax of Rs 840.15 crore and penalty of Rs 654.34 crore. MHADA stands second in the list with 3601 properties and a total outstanding of Rs 575.11 crore, which includes Rs 354.66 crore of outstanding property tax and penalty of Rs 220.44 crore.
As per the list, the Police Commissioner with its 404 properties owes the BMC a total property tax of Rs 106.17 crore, which includes outstanding property tax of Rs 62 crore and penalty of Rs 44.16 crore. The state government, with its 598 properties, owes a total of Rs 386.75 crore, which includes outstanding property tax of Rs 186.51 crore and penalty of Rs 200.24 crore.
While the central government with 420 properties owes a total of Rs 371.15 crore, which includes outstanding property tax of Rs 179.08 crore and penalty of Rs 192.07 crore. While another public authority, the Government Port Railway, with as many as 4642 properties, owes the BMC Rs 22.57 crore, without any penalty.
“One of the reasons the government authorities have is a lack of funds. As they get funds, they clear the outstandings. However, all outstanding property taxes are not clear. MMRDA has maximum outstanding and BMC follows up regularly,” said Deputy Municipal Commissioner (Assessment & Collection), Vishwas Shankarwar.
“As per rules, we cannot take actions against government buildings like disconnecting the water supply or power for non-payment of property tax, like private we do for private properties. Although they default taxes, they are public institutions and need to keep running. The maximum we can do is send reminder notices and follow up,” said another senior BMC officer.
Despite repeated attempts, MMRDA Commissioner Sanjay Mukherjee did not respond to calls and text message from the FPJ for a comment.
In the financial year 2024-25, the BMC achieved a record-breaking property tax collection of Rs. 6,388 crores. The BMC currently imposes a 2% late fee on delayed property tax payments each month, which adds up to an annual penalty of 24%.
Top government authorities in Mumbai defaulting on property tax-Outstandings as of April 30, 2025
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