Even as the BMC cracks the whip to meet its property tax collection target before the financial year comes to a close, of its outstanding dues of Rs 9,948 crore in property tax, the BMC may not be able to collect Rs 5,094 crore any time soon as the cases are locked in disputes. “These cases land in court and the amount is locked till the final verdict,” said Devidas Kshirsagar, Assistant Municipal Commissioner, Assessment and Collection department. This year, the civic body has a target of collecting property tax upto Rs 5,403 crore before March 31, of which it has managed to collect Rs 3,820 crore so far. The BMC last week sealed seven residential and commercial properties in the city, including vacant plots owned by construction companies, a property owned by corporate company, a cinema hall, and properties belonging to residential societies. According to civic data, the BMC has a total outstanding of Rs 9,948 crore in property tax. However, the assessment and collection department is rushing to meet its target set for the current fiscal. The BMC has made a list of 100 undisputed defaulters, which includes several corporates, developers, housing societies and other establishments. Many of them have not paid property tax for several years, civic officials claimed. Out of pending dues of Rs 9,948 crore, Rs 5,094 crore are disputed, which is likely to take a long time for recovery as they are under litigation. The civic body is targeting the undisputed amount. The total undisputed amount to be collected by the civic body comes to around Rs 4,854 crore. “The civic body is free to take action against defaulters and recover it by adopting several measures,” said a senior official from the Civic Assessment and Collection department. According to civic officials, the BMC charges two per cent penalty in the second year for non-payment of property tax. The water connection is severed and properties are sealed if arrears are not paid for several years. “We are planning to take such drastic measures in case of other defaulters too if they do not pay the arrears soon,” said Kshirsagar. As per rules, every property holder in the jurisdiction of BMC is supposed to pay property tax within 90 days from the day of receiving their bills, failing which civic body initiates a phase-wise action against defaulters. In the first stage, the assessment and collection inspectors pay a visit and personally follow up with them on the issue. If payment is still not done, a demand letter is sent to the defaulter warning them. Following this a 21-day final notice is given to the property holder. If the payment is still not done, the property or part of the property is then sealed by the civic body, sometimes water connection is severed too. The last phase includes civic body resorting to property attachment. After Andheri’s Seven Hills Hospital, several other top corporates, and commercial and residential establishments are likely to face BMC’s action over alleged non-payment of property tax, civic officials said. Last week, the BMC had sealed the administrative office of Seven Hills Hospital in Marol, for its alleged failure to pay property tax to the tune of Rs 9 crore.
