Property taxes provide around 24% of BMC's total revenue, making it its main source of income

by Web Desk | Published: 07 Aug 2022

BMC Elections 2022
The BMC has planned to auction the attached properties of property tax defaulters in order to tighten the noose around them. For the process of auctioning 2,875 properties totaling more than Rs 3,000 crore, an auctioneer will be chosen. The civic officials predicted that the procedure would take two months. The civic organisation previously staged an auction in 2012.
Property tax, which generates 24% of the BMC's revenue after the repeal of octroi, is the main source of income today. The officials claim that staggering property tax debts of more than Rs 15,000 crore are still unpaid as a result of disagreements and legal proceedings in recent years. As a result, Covid's civic council started taking action against people who were in arrears on their property taxes by attaching their movable property as well as cutting off their access to water and sewer.
Accordingly, 2,875 properties have been attached throughout the course of the last five years by the BMC's assessor and collection department. The department has attached business galas, office furnishings, opulent cars, and even home stuff from defaulters in addition to open plots and buildings. Currently, the pandemic-delayed auction will still take place but will only include non-movable assets.
The department's chief civic official announced that the properties that are not in dispute will be placed up for sale. BMC deputy commissioner Sunil Dhamne explained the procedure, saying, "We will be appointing an agency to handle the auction. The process will take a few months to finish. The agencies that are interested to run the auction are invited to declare their interest by the BMC. According to another official, the agency will assess all the assets and conduct the auction online.