Seizures and Auctions: How BMC Drove a 23% Jump in Property Tax Collections in Mumbai

Officials said the turnaround was driven by a stricter approach towards defaulters. From last year, the BMC initiated a crackdown that included seizing properties and listing them for auction to recover dues. In many cases, property owners came forward to clear their pending taxes soon after their properties were seized. At the same time, these actions sent a wider message, prompting other defaulters to make payments voluntarily.

“The moment we initiated seizures and auction proceedings, many owners cleared their dues. It also created awareness and urgency among others,” a senior civic official said.

In October last year, the BMC issued notices to auction four properties to recover pending dues worth ₹120 crore—marking the first such move since 1984. More recently, the civic body also seized multiple properties in South Mumbai, including two at Kamala Mills, for non-payment of dues, further reinforcing its stance.

Civic records show that the highest recovery this year came from K East (Andheri East) ward at ₹719 crore, followed by G South (Worli, Prabhadevi) with ₹670 crore and K West (Juhu, Vile Parle) with ₹622 crore. H East (Bandra East, Khar) and H West (Bandra West) also contributed significantly with ₹572 crore and ₹536 crore respectively. In contrast, the lowest recovery of ₹47 crore was recorded in B ward covering Dongri and Sandhurst Road areas, while C ward (Kalbadevi–Chirabazar) saw collections of ₹90 crore.

Property tax remains one of the biggest sources of revenue for the BMC, with Mumbai having among the highest property tax rates in the country. Despite the improved recovery, outstanding dues still stood at ₹10,899 crore as of December 2025, underlining the scale of the challenge.

Officials also pointed out that the absence of large-scale elections last year worked in their favour. Without election duties, staff were able to focus on systematic tax recovery, ensuring better follow-ups and enforcement.

Even as collections rose, the BMC’s financial records show that its reserves have declined by nearly ₹10,000 crore over the past five years. From ₹91,690 crore in 2021, reserves stood at ₹81,774 crore in 2025–26, after having peaked during the previous decade.

For now, officials see the record-breaking recovery as a result of consistent enforcement and a clear message to defaulters. Whether this momentum continues will depend on how firmly the civic body sustains its action in the coming years.

Property tax recovered for 2025-26 :- Rs 7,610 crore
Property tax target for 2025-26 :- Rs 7,341 crore

Top 5 wards from where the highest recovery was made :-

Rs 719 crore — K east (Andheri East)
Rs 670 crore — G south (Worli, Prabhadevi)
Rs 622 crore — K west (Juhu, Vile Parle)
Rs 570 crore — H east (Santacruze east, Khar east)
Rs 510 crore — H west (Bandra West)

Property tax recovery of previous financial years :-

FY 2024-25 — Rs 6,172 crore
FY 2023-24 — Rs 4,500 crore