Maharashtra Deputy CM Eknath Shinde-Led UDD Waives ₹799 Crore In Penalties On Illegal Constructions In Thane

Mumbai: The Urban Development Department (UDD), headed by Deputy Chief Minister Eknath Shinde, has decided to waive an estimated Rs799 crore in penalties imposed on illegal constructions in Thane up to March this year.

About The Waiver

Thane is Shinde’s hometown, where he has significant influence. The waiver will reduce the Thane Municipal Corporation’s (TMC) penalty income, but the UDD has directed the civic body to start a property survey. The aim is to implement property tax collection under the current ratable and capital-based tax systems. According to the state department, this survey could help increase revenue from property taxes, which is considered the civic body’s most reliable income source.

Officials said property owners had been avoiding penalty payments for illegal constructions, hoping for a waiver. As a result, the recovery of the original penalty amount stood at only Rs 145 crore. The state believes the waiver will encourage payment of at least this basic penalty amount. The UDD clarified that the waiver does not mean the illegal constructions will be regularised. It also stated that the state will not compensate the TMC for the revenue loss.

The decision was formalised in a government resolution issued on Monday. Politically, the move is expected to benefit the Shinde-led Shiv Sena ahead of the upcoming TMC elections. Shinde has been closely involved in Thane’s civic affairs since his tenure as district chief of the unified Shiv Sena. The decision comes even as the Bombay High Court is hearing cases on rampant illegal constructions in Thane district and Mumbai. The state has faced difficulties defending such structures in court, particularly in matters involving Kalyan-Dombivli, Navi Mumbai, and Thane.