Municipal Corp to now auction other properties of tax defaulters

First India Bureau

Mumbai: To recover property tax, the Brihanmumbai Municipal Corporation (BMC) has started the process of appointing a private organization to search for more immovable properties and investments of nearly 67 defaulters.

These property owners owe a total of over Rs355 crore, which includes basic tax of Rs268 crore and penalty of Rs87 crore. This is the first time that the BMC has taken steps to seize and auction other properties of property tax defaulters.

Property tax is a major source of income for the Brihanmumbai Municipal Corporation (BMC). But it has not been able to meet the property tax target for the past seven years and overall revenue has seen a notable decline.

In the current financial year, the civic assess- ment and collection department has collected Rs4,767 crore till March 22, with less than a week in hand before the financial year ends. The target was Rs7,000 crore, considering a 14% hike. However, the state government struck down the hike and the BMC revised its target to Rs4,800 crore.

Last year, 2021-22, the total property tax collection was Rs5,792 crore. The civic body has initiated action against property tax defaulters and seized properties of these defaulters under various categories like residential, industrial, commercial and open space. These property owners owe a total of Rs355.19 crore.

Property tax has to be deposited within 90 days of receipt of property tax bills. If the tax is not paid during this period, the BMC takes action like sending a notice.

BMC PROPOSES 50% RENT INCREASE FOR MUNICIPAL GALAS

Mumbai (FIB): Gala holders from Lalbaug Market, on behalf of other trade associations and stall holders, met joint municipal commissioner Ramesh Pawar and assistant municipal commissioner Prakash Rasal along with Shiv Sena UBT’s former corporator Anil Kokil and MLA Ajay Choudhary. Rajendra Bahadur Singh, president of the Lalbaug Market Merchants Association, said that their monthly rent, which used to be `120, had been hiked to `1,350 and would be further increased by 5% every year. “This increase is unfair,” he said. “Our businesses have been disrupted since the pandemic and online malls have eaten into them. We can understand a hike from `120 to `200, but to push it to `1,350 with an annual 5% hike and 18% GST is unaffordable. What will we earn and save? There is no maintenance of municipal markets either,” Singh added.