BMC Extends Auction Deadline for Property Tax Recovery
The Brihanmumbai Municipal Corporation (BMC) has recently made headlines by extending the deadline for the auction of properties aimed at recovering outstanding property tax dues. Initially scheduled for October 29, the new deadline has been set for November 6. In a shift from its earlier plan, BMC will now auction only two properties instead of the initially proposed four, highlighting the importance of property tax recovery for the civic body.
This auction is expected to generate a minimum revenue of Rs 120 crore for the BMC, which is crucial for funding various civic projects and services. The properties listed include a land plot owned by the Housing Commissioner of Bombay with a base price of Rs 37 crore and a privately owned house with shops located in Kalbadevi, priced at Rs 26.01 crore. The decision to auction these properties is part of BMC's efforts to tackle the issue of unpaid property taxes effectively.
Officials have stated that the owners of the two properties in Chunabhatti and Kandivali have settled their dues, which is why only the two remaining properties will be auctioned. The BMC has engaged an external agency to oversee the bidding process, ensuring transparency and efficiency in the auction.
For the auction to be successful, a minimum of three bidders must participate. If sufficient interest is not generated, the BMC may consider re-auctioning the properties. This step reflects the civic body's commitment to ensuring that property owners fulfill their tax obligations and that the revenue streams for the municipality remain robust.
Property tax is a significant source of income for the BMC, akin to a cess on all real estate and commercial properties within its jurisdiction. When property owners default on their tax payments, the BMC issues notices with penalties. Prolonged non-payment can lead to properties being seized and ultimately auctioned off. Notably, the last property auction conducted by BMC was back in 1984, emphasizing the rarity of such events.
This year, the BMC has reported its highest property tax collection to date, with Rs 6,011 crore collected against an annual target of Rs 6,200 crore. This achievement underscores the growing importance of property tax in the BMC's revenue generation strategy and highlights the need for property owners to pay their dues promptly.
