Mumbai Properties Face Auction Risk as BMC Demands ₹27 Crore in Overdue Tax Payments

The Brihanmumbai Municipal Corporation has announced that five Mumbai properties are under threat of auction proceedings after their owners failed to clear cumulative tax arrears exceeding ₹27 crore. The civic body has granted defaulters a 21-day notice period to settle their outstanding dues before initiating the auction process.

High-Profile Defaulters Include Luxury Hotel

Among the prominent properties facing auction proceedings is the well-known Hotel Oakwood in Juhu, according to municipal sources. The list of defaulting properties also comprises a vacant plot of land, property owned by a housing society, and a commercial establishment combining residential and retail spaces.

Municipal officials confirmed that the total outstanding amount across these five properties has surpassed ₹27 crore in unpaid BMC property tax obligations. The civic corporation's action comes as part of its intensified efforts to recover long-pending dues from high-value defaulters.

Structured Legal Framework Before Auction

The municipal corporation follows a systematic legal procedure before proceeding with property auctions. Sources within the BMC explained that the process begins with penalty levies imposed after the original due date passes, followed by multiple demand notices sent to property owners.

Municipal authorities indicated that property owners retain the option to settle their dues by paying at least 50 percent of the outstanding amount along with providing a post-dated cheque for the remaining balance, which can temporarily halt the auction process.

Expanded Recovery Drive Targets More Properties

The current action represents only the initial phase of a broader recovery initiative, according to civic officials. The BMC has revealed plans to issue similar notices to an additional ten properties in the coming weeks, indicating the scope of outstanding tax collections in Mumbai's property sector.

Municipal sources emphasized that this enforcement drive specifically targets high-value defaulters as part of efforts to reduce the significant impact of outstanding property tax collections on municipal finances. The strict enforcement signals the corporation's commitment to addressing long-pending arrears.

Market Impact and Future Implications

Property market observers are closely monitoring whether the defaulting owners will clear their dues within the stipulated 21-day window. The outcome of these proceedings could set a precedent for future enforcement actions against tax defaulters.

Industry experts suggest that the valuation and auction process will require careful handling to avoid potential legal complications. The municipal corporation's actions may also prompt other property owners with pending tax obligations to prioritize settling their dues to avoid similar enforcement measures.

Real estate analysts noted that such enforcement actions could raise awareness among Mumbai property owners about the importance of timely property tax payments, potentially leading to improved compliance rates across the city's real estate sector.