Mumbai’s municipal administration has escalated its recovery drive against high-value property tax defaulters, initiating e-auction proceedings against six properties with cumulative arrears exceeding Rs 455.48 crore.
The action has been undertaken by the Assessment and Collection Department of the Brihanmumbai Municipal Corporation (BMC) following repeated notices to property holders who failed to clear outstanding dues, including penalties. The six assets identified for e-auction are located in Goregaon (West), Bandra (West), Dahisar, Parel, Mazgaon and Malad–Kurar village spanning suburban, industrial and inner-city zones. The portfolio reportedly includes open plots, residential land parcels, commercial premises, industrial units and a hotel property. In addition, two properties in Fort, South Mumbai comprising a residential-cum-hospital building with arrears of Rs 21.03 crore and a commercial property with dues of Rs 13.47 crore have been issued final 21-day notices. Failure to clear dues within the stipulated period will trigger auction proceedings. The enforcement measures are being carried out under Sections 203 to 206 of the Mumbai Municipal Corporation Act. Officials clarified that movable assets will first be attached and auctioned under distraint proceedings. If recoveries remain insufficient, immovable properties will be auctioned in accordance with statutory provisions.
The process will also comply with the interim order of the Bombay High Court in Writ Petition No. 2592 of 2013, which governs certain aspects of municipal recovery actions. The move reflects mounting fiscal pressures on urban local bodies to shore up revenue streams amid rising infrastructure commitments. Property tax remains one of BMC’s most significant own-source revenue channels, funding civic services including roads, stormwater systems, healthcare and solid waste management. Large-scale arrears particularly in high-value commercial and mixed-use assets impact municipal cash flow and capital expenditure planning. By initiating e-auctions, the civic body is signalling stricter enforcement and reduced tolerance for chronic non-compliance. For Mumbai’s real estate ecosystem, the development sends a cautionary message. Institutional investors and developers are likely to monitor enforcement patterns closely, especially in prime micro-markets such as Bandra (West) and Parel, where land values are among the highest in the country.
While auctions of distressed civic-attachment properties can create acquisition opportunities, legal complexities and compliance history often shape bidder appetite. The coming weeks will determine whether the move translates into substantial recoveries or sets a precedent for a broader, city-wide crackdown on long-pending municipal tax arrears.
Also Read: DevX Signs Rs 850 Crore Development Management Office Deal in Ahmedabad
BMC Moves to E-Auction Six Mumbai Properties Over Rs 455 Crore Tax Arrears
