BMC Asks MMRDA and MHADA to Settle ₹2,287 Crore Property Tax Dues, Seeks Immediate Payment

by- Grihik
Mar 24, 2026

The Brihanmumbai Municipal Corporation has demanded over ₹2,287 crore in property tax from the Mumbai Metropolitan Region Development Authority (MMRDA) and Maharashtra Housing and Area Development Authority (MHADA). MMRDA owes ₹1,685.6 crore across 128 properties, while MHADA has arrears of ₹601.6 crore from 3,636 properties.

Mumbai, March 24, 2026: The Brihanmumbai Municipal Corporation has written to two key state agencies—the Mumbai Metropolitan Region Development Authority and the Maharashtra Housing and Area Development Authority—flagging their property tax dues of over ₹2,287 crore and seeking immediate payment .

Outstanding Dues

According to BMC's records as of January 31, MMRDA has arrears of ₹1,685.6 crore across 128 properties, comprising ₹946.2 crore in unpaid taxes and ₹739.4 crore in penalties. MHADA owes ₹601.6 crore from 3,636 properties, including ₹222.5 crore in penalties .

"In view of the substantial outstanding amounts, instructions should be issued to ensure immediate payment of dues," BMC said in the letters sent on March 16, just days before the end of the financial year .

Source of Dues

Officials from the property tax department stated that the bulk of MMRDA's dues stem from unpaid taxes on its casting yards and Metro stations, while MHADA's arrears are linked to properties it owns, including chawls such as BDD chawls .

BMC's Revenue Position

Additional Municipal Commissioner Ashwini Joshi, who is in charge of the civic property tax department, said the civic body is working on ensuring that property tax dues from various departments are recovered. "We have sent a communication to both the agencies. Our property tax collection this year (₹6,331 crore) has already exceeded last year's (₹6,200 crore)" .

Property tax is BMC's single largest revenue source, levied on over 9 lakh properties. The civic body's dependence on this stream has deepened since 2017, when octroi—once its biggest revenue generator—was scrapped following the rollout of GST. With collections already crossing last year's mop-up ahead of schedule, officials said the renewed push to recover long-pending dues is aimed at further strengthening BMC's finances .

Property Tax Exemptions

Currently, around 3.6 lakh properties in Mumbai are exempt from property tax as their carpet area is under 500 sq ft—a policy implemented since 2022 by BMC following a state government directive. Recently, the civic House passed a notice of motion seeking to increase the exemption limit for property taxes for residential units from 500 sq ft to 700 sq ft .