Mumbai: The BMC has taken a decisive stand against unauthorised construction across the city by imposing a steep 200% property tax penalty on 3,343 illegal properties, amounting to a staggering Rs 392.28 crores. This hefty fine is part of the BMC's crackdown on violating construction norms.
Despite the severity of the penalty, the recovery rate has been far below expectations. Between April 1, 2024, and March 31, 2025, the BMC has managed to recover only Rs 12 crores—a mere fraction of the total fine imposed.
As per the Mumbai Municipal Corporation Act, 1888, Section 152 (A), there is a clear provision to impose a 200% penalty on property tax for unauthorised constructions. This legal framework allows the BMC to take action against illegal constructions, aiming to deter property owners from bypassing city planning norms.
A senior civic official said, "Many times, when the BMC serves notices for unauthorised constructions or alterations, several property owners approach the courts. As the matter goes to court, demolition work cannot be carried out until a ruling is made. However, penalties can still be imposed. Therefore, it was decided to levy a 200% property tax penalty on these property owners."
When the BMC demolishes unauthorised constructions, penalty notices are given to the property owners at the same time. The civic officials are responsible for collecting these penalties, ensuring the financial process is handled quickly and efficiently. However, the civic team has been unable to recover Rs. 379.90 crores in the financial year 2024-25.
"Our team was focused on tracing large defaulters with unpaid dues running into crores, which led to this action being sidelined. However, since we have successfully met the property tax target this year, we can now shift our focus to recovering these penalties," said an official.
Penalty imposed ...(between April 1, 2024 to March 31, 2025)
area...properties...fine imposed..collected...pending dues (amount in crores)
city...977....Rs. 238.34...Rs. 4.58.....Rs. 233.76
Western suburbs...1672...Rs. 126.58...Rs. 6.56...Rs. 120.02
Eastern suburbs ...694...Rs. 27.37...Rs. 1.25....Rs.26.12
Highest number of properties with penalty...
wards....areas....properties... fine imposed...recovered....pending amount
H / West...Bandra West...832...Rs.100.68...Rs.4.66...Rs.96.02
G/ North...Dadar, Dharavi...553...Rs. 24.40...Rs.1.13...Rs.23.26
S...Bhandup....453..Rs.16.87...0.51...Rs.16.36
