MUMBAI: Government departments and public agencies owe the BMC over ₹3,000 crore in property tax, with the civic body managing to recover only ₹243 crore in the last five years, according to data disclosed by the BMC under the Right to Information (RTI) Act.
The information was revealed in response to an RTI inquiry from civic activist and advocate Godfrey Pimenta, who sought to understand why “honest taxpayers should bear the burden” while government entities fail to fulfill their property tax obligations.
The BMC’s reply dated December 12, 2025, indicates that as of October 31, 2025, the property tax arrears owed by state and central governments and various entities amounted to ₹3,283 crore. Defaulters include organizations like Mhada, Indian Railways, and other government-run bodies. The BMC has issued demand notices to these authorities under Section 202 of the Mumbai Municipal Corporation Act, 1888.
Despite these actions, recovery has been slow, with just ₹243 crore collected from these government entities over the past five years. The civic administration noted that the deputy chief accountant (finance) and related departments have corresponded multiple times with both the state and central governments to seek payment. “Follow-ups occur through regular meetings with relevant authorities to recover outstanding dues,” the BMC stated in its response.
Civic officials, when approached, confirmed the outstanding amounts and said they are actively engaging with the relevant agencies. “Our teams are working diligently to ensure recoveries are made from defaulters,” an official remarked.
However, Pimenta highlighted that outstanding dues from government bodies increase pressure on the city’s finances, potentially leading to a heavier tax burden on individual citizens.
For the BMC, property tax remains its largest source of revenue. In the fiscal year 2024-25, the civic body collected around ₹6,198 crore in property tax. If a property owner in Mumbai defaults on payment, the BMC can pursue recovery tactics under the Mumbai Municipal Corporation Act, starting with interest and penalties on the unpaid amount and issuing demand and reminder notices.
