Mumbai, March 31: A state government amendment now allows the BMC to apply the Capital Value System (CVS) from 2010, helping it recover long-pending dues.
Earlier, properties taxed on plot “potential” and
many hoarding companies paid only 50% tax due to ongoing court cases. With this change, the BMC can now collect the remaining dues, estimated at Rs 252 crore from these companies.
Background of tax dispute
As per civic data, a total of 1,696 hoardings—both small and large, including regular and digital formats—have been installed across the city. The municipal corporation levies charges on companies for the use of space for these hoardings.
In 2010, the BMC introduced the CVS, factoring in a plot’s potential Floor Space Index (FSI) for tax calculation. However, widespread legal challenges led to a prolonged dispute.
Interim payment system
From 2012, as an interim measure, some assessees were allowed to pay 100% of the old rateable value tax and 50% under the proposed CVS, with bills clearly stating that amounts could be revised retrospectively based on court rulings. During this period, several hoarding companies also chose to pay only 50% of the property tax pending the final verdict.
"Following the state government’s Urban Development Department (UDD) approval of an amendment granting the BMC the power to levy property tax retrospectively, these hoarding companies will be billed to recover pending dues—up to Rs 252 crore, including penalties,” said a senior civic official.
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Recovery drive and pending dues
Property tax remains a vital source of revenue for the civic body. As of March 2026, the BMC is chasing Rs 6,000–Rs 10,000 crore in outstanding dues, much of which is tied up in legal disputes.
Meanwhile, the BMC has launched a crackdown on defaulters, attaching 6,922 properties with unpaid property tax totaling around Rs 6,089 crore for the financial year 2025–26.
Following these measures, 2,888 defaulters have cleared Rs 784.32 crore in dues. Currently, 483 properties remain under seizure, while 210 are slated for auction, as per civic data.
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