The Brihanmumbai Municipal Corporation (BMC) has decided to impose 200 per cent Property Tax as a penalty on 3,343 illegal properties in Mumbai, the officials said on Wednesday.
The civic body`s decision aims to generate a revenue of Rs 392.28 crores with the recovery of the penalties, they said.
However, BMC has only managed to recover Rs 12 crores in this financial year.
As per Section 152(A) of the Mumbai Municipal Corporation Act, 1888, a provision allows the imposition of a 200% penalty on Property Tax for unauthorized constructions. Whenever BMC demolished or took action against these illegal constructions, penalty notices were issued to the property owners. Despite these efforts, the civic body has not been able to recover Rs 379.90 crores in the financial year 2024-25.
“We focused on tracking down large defaulters with unpaid dues, which delayed this recovery action. But now that we have met our Property Tax target for the year, we can focus on collecting these penalties,” said a BMC official.
In a record achievement, the BMC has collected a total of Rs 6,388 crore in Property Tax for the fiscal year 2024-25, the highest amount since 2010. The amount surpassed the civic body`s target of Rs 6,200 crore.
However, significant penalties remain unpaid in various wards. The highest penalty is due in the G South ward, which includes areas like Dadar, Mahim, and Dharavi. The BMC has recovered Rs 3.27 crores, but Rs 205.83 crores are still pending. In the H West ward, which covers Bandra, Santacruz, and Khar West, the BMC has recovered only Rs 4.66 crores, with Rs 96.02 crores remaining unpaid.
Penalties collected between April 1, 2024, to March 31, 2025:
| Area | Properties | Fine Imposed | Collected | Pending Dues |
| City | 977 | 238.34 crore | 4.58 crore | 233.76 crore |
| Western Suburbs | 1,672 | 126.58 crore | 6.56 crore | 120.02 crore |
| Eastern Suburbs | 694 | 27.37 crore | 1.25 crore | 26.12 crore |
