The Brihanmumbai Municipal Corporation (BMC) has issued notices to 100 major property tax defaulters in the city. However, the top 10 defaulters owe a total of INR 600 crore.
Raghuvanshi Mills Limited owes INR 119.59 crore, followed by M/s Omkar Developers Private Limited with INR 104.78 crore. Six of the top 10 defaulters in the municipal corporation’s G South ward are from Prabhadevi.
A senior official from the municipal corporation’s tax assessment and collection department said that the legal notices were sent after the defaulters did not respond to the “demand letter”. The municipal corporation has sent attachment notices of the properties to the defaulters.
Failure to comply with which will result in seizure notices and later auction notices. If the defaulters do not pay the dues, the properties will be seized.
"There are 100 defaulters and we have announced the list of top 10. Notices were issued to different defaulters on different days," a senior civic official said.
The civic body's action is under sections 203, 204, 205 and 206 of the Brihanmumbai Municipal Corporation Act, which allows the civic body to seize properties to recover dues and then auction them.
Property tax, the main source of revenue for the civic body (BMC), must be deposited with the civic body within 90 days of receipt of the notice. If the tax is not paid within this period, the civic body initiates phased action.
First, officials of the civic body's tax assessment and collection department follow up with the defaulters to pay the money through direct contact and communication. If the property tax is not paid, a "demand letter" is sent.
The next step is to give the property owner a final notice of 21 days. Finally, if there is still no response, action is taken to seize the property of the defaulters.
The municipal corporation creates awareness and appeals for property tax recovery through various media. Property owners can also pay taxes online.