Mumbai: The BMC’s 15.89% property tax hike for 2025–26 has triggered sharp criticism, with BJP leader Ravi Raja slamming the move as unjust. He exposed 481 top defaulters who owe Rs 14,000 crore and demanded the civic body recover dues from them instead of burdening honest taxpayers. Despite public outrage, on Thursday the BMC claimed that there is no tax rate revision but a restructuring.
Ravi Raja said, “The revision in property tax based on Ready Reckoner (RR) rates has led to a hike of up to 40% for some property owners. If regular taxpayers are penalised for delays, while major defaulters owing crores face no action, it reflects a glaring contradiction and grave injustice to honest citizens."
In his letter to Municipal Commissioner Bhushan Gagrani, which also includes a list of big defaulters, Raja urged immediate recovery of pending dues. “We understand that property tax must be revised every five years, but the hike could be kept below 15% if the civic body recovers the crores owed by top defaulters,” he added.
Godfrey Pimenta, founder of the Watchdog Foundation, said, "The BMC has hiked property tax for Gaothan properties by 40%. Earlier, I paid Rs 14,204 for six months. But the revised property tax bill issued on May 15, 2025, now states Rs 19,885 a steep 40% increase."
Meanwhile, the BMC clarified that Due to changes in the RR rates for the financial year 2025–26, there is a legal provision for revision of property tax dues. “All legal provisions were duly followed while issuing the revised bills,” said a civic official.
The BMC also reiterated that nearly residential properties under 500 sq ft (carpet area) continue to remain exempted from property tax, as per a 2017 state directive. The last property tax hike took place in 2015–16.
As per the list submitted by Ravi Raja to the BMC, the major property tax defaulters with dues running into crores (including penalties) as of March 31, 2025, include: Mumbai Metropolitan Regional Development Authority: Rs 224.89 crores, J. Kumar Infraprojects Ltd: Rs 308.39 crores, Taj Lands End Ltd: Rs 140.85 crores, The Raghuvanshi Mills Ltd: Rs 139.74 crores, L&T - Scomi Engg. B.H.D. Consortium: Rs 271.83 crores, MCGM Entrepreneur Seven Hills Health Care Ltd: Rs 155 crores.
