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In a first, BMC to auction two seized choppers over property tax dues, Real Estate News, ET RealEstate

In a first, BMC to auction two seized choppers over property tax dues, Real Estate News, ET RealEstate
MUMBAI: Facing a stiff challenge to meet its target of property tax collections, the BMC, in the first such instance, is set to auction two helicopters that it had seized in 2020 from a private company to recover its Rs 4.1 crore dues. The BMC will soon appoint a consultant to calculate the value and then sell the helicopters.

Civic officials said the BMC had seized two helicopters from a company which had not paid property tax to the tune of Rs 4.1 crore. “We had seized the two helicopters from a private company and sealed them at the Juhu airport. We have floated tenders to appoint a consultant to value the flying machines and then auction them. We will recover the dues from the sale proceeds,” said Vishwas Mote, assistant municipal commissioner, assessment and collection.

The BMC has only managed to collect Rs 627 crore in property tax so far. The property tax department has kept a modest target of Rs 5,000 crore this year. At Rs 5,135 crore, the BMC managed to collect its highest-ever property tax in financial year 2020-21. This came in a year when the BMC had taken an internal loan of Rs 5,876 crore to meet its expenses.

“Recovery of property tax was a major challenge this year in the wake of the Covid-19-induced lockdown. However, due to proper planning and effective implementation of that plan, 98% of the target of Rs 5,200 crore was been achieved,” an official said.
In a first, BMC to auction two seized choppers over property tax dues BMC officials said it had seized the helicopters of a Delhi-based aviation company. The BMC had given the company operating from Vile Parle 21 days to pay the dues but it did not.

In 2019-20, the property tax collection was Rs 4,161 crore. Facing a dip in revenue collection, in 2019, BMC had decided to go after big defaulters. It began to seize movable properties, including air-conditioners, television sets and furniture.

A civic official said based on its 2016 policy, the BMC sent notices to the defaulters and then began to disconnect their water connection for three weeks besides sealing lifts and entrance to the properties. Officials said though they had earlier decided to seize and auction movable properties of defaulters, it was never implemented.


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