Crackdown On Mumbai Tax Defaulter: Pay property tax on time or lose your fridge, computer, AC, warns BMC

While the existing practice has been to levy penalty charges on defaulters, sources in the BMC said the Bombay High Court, hearing a property tax-related petition, had told the civic body not to collect such penalty charges for now. The civic body has, hence, devised alternate means to penalise the defaulter.

According to the new policy, the corporation will disconnect the water connections of defaulters in three weeks to recover property tax dues. If the defaulters still don’t pay, the BMC proposes to seize moveable properties such as computers, furniture, other valuables, except stree dhan (gold gifted to a woman at her wedding). It proposes to seal the lifts, building material and entrance of the building to restrict its usage to recover the property tax due on land, according to the policy.

Municipal Commissioner Ajoy Mehta issued a circular regarding this policy Tuesday. The policy also allows the civic body to instruct banks to freeze the accounts of tax defaulters. Besides, if the defaulters still don’t settle their dues, the civic body will auction the property. “The property will be given to the successful bidder. If the bid amount is less than the reserve price, the civic body will buy the property at a nominal rate. If the BMC buys the property, a title will be given to it and its name will be added on the property card,” states the policy.

Officials from the assessment and collection department said the policy is aimed at boosting property tax collections. In March, the BMC had cracked the whip on a top property tax defaulter who owed over Rs 1 crore. There were close to 120 such defaulters, with the total outstanding being around Rs 524 crore.

Sanjay Mukherjee, Additional Municipal Commissioner said there was no such policy earlier.