Mumbai: Municipal Corporation has taken strict action against major property tax defaulters and has started seizure and auction proceedings. Under this drive, the Municipal Corporation’s Tax Assessment and Collection Department has issued long-term notices to a total of 34 properties under the e-auction process. This includes vacant plots, commercial buildings, hotels and mixed-use properties. These 34 defaulters have a total arrears of Rs 548.69 crore, including penalties. Out of these, the direct auction process has been started for 11 properties whose long-term notice period has expired and bids have been invited from interested buyers. As soon as the auction process started, 5 property owners have paid their arrears of Rs 10.45 crore.

Meanwhile, Additional Municipal Commissioner (City) Dr. Ashwini Joshi has clarified that strict action will continue against property tax defaulters.

Under the guidance of Municipal Commissioner Mr. Bhushan Gagrani, Additional Municipal Commissioner (City) Dr. Ashwini Joshi and Joint Commissioner (Tax Assessment and Collection) Vishwas Shankarwar, extensive and planned efforts are underway to effectively recover property tax from property owners under the jurisdiction of the Mumbai Municipal Corporation. The Municipal Corporation administration has repeatedly appealed to the taxpayers to pay the arrears within the stipulated period and avoid penalty and legal action. However, the Brihanmumbai Municipal Corporation has now taken a tough stand against property owners who deliberately avoid paying taxes despite continuous notices and follow-ups. A special drive has been launched to take concrete and decisive action against such arrears of seizure and attachment. The process of auctioning properties has been started to strictly implement the laws regarding tax recovery. The Mumbai Municipal Corporation is issuing seizure notices under Section 203 to property tax defaulters and those who are unable to pay property tax despite having financial capacity. If the tax is not paid within the stipulated period, then as per the provisions of the Mumbai Municipal Corporation Act, the concerned property will be seized and auctioned under Sections 203, 204, 205, 206. The notice has clarified that if the expected tax is not recovered from the concerned property, then the property will be auctioned as per the interim order of the Hon’ble High Court in Petition No. 2592/2013. In this context, an auction notice has been issued under Section 206 (2) of the newly amended Mumbai Municipal Corporation Act, 1888 on the properties of defaulters of all 26 administrative divisions of the Burhan Mumbai Municipal Corporation. These properties will be sold through public e-auction.

In C section, there is a mixed property in the name of M/s. Manuchar Maneksha Gandhi and V. H. D. Shah (outstanding amount of Rs. 2 crore 24 lakh 43 thousand 922), F South section, a plot in the name of Shri. Laman Raghunath Shetty (outstanding amount of Rs. 89 lakh 15 thousand 988), H West section, a commercial property in the name of Shri. Bhikkhabhai N. Upadhyay and Shri Ram Jay Bhatt (outstanding amount of Rs. 18 crore 88 lakh 13 thousand 376), P North section, a plot in the name of Shri. Commercial shed in the name of Bachu Bhai W.D. Shaw & Company (remaining amount Rs. 32.3 million 3 thousand 938), hotel in the name of Messrs. Ameer Park and Amusement Park in P-South Zone (remaining amount Rs. 34.5 million 55 million 65 thousand 499), oil mill and mill warehouse. 01 crore 41 lakh 91 thousand 080, plot in the name of M/s Vikailal Investment in R North Zone (outstanding amount Rs. 02 crore 41 lakh 79 thousand 329), hospital in the name of Sardar Syedna Tahir Saifuddin Sahib in D Zone (outstanding amount Rs. 21 crore 26 lakh), property of Sardar Syedna Tahir Saifuddin Sahib in D Section worth Rs. 03 lakh 26 thousand (outstanding amount Rs. 13 crore 47 lakh 86 thousand 245), vacant plot in the name of M/s Summer Associates in H West Section (outstanding amount Rs. 188 crore 46 lakh 247), commercial property in the name of M/s Rajahans Associates (outstanding amount Rs. 7 crore 90 lakh in section) Rs. 687), vacant plot in the name of Jeevan Shraddha Cooperative Housing Society in R South Section (outstanding amount Rs. 64 lakh 29 thousand 461 Rs) and M/s Summer Building Corporation in E-Section Private Limited (remaining amount Rs. 85 crore 38 lakh 78 thousand 185) etc.

A long notice of 21 days has been issued to all these defaulters to pay the tax. If the tax is not paid within this period, the auction process will be initiated as per the prescribed procedure.