BMC to auction Mumbai's Hotel Oakwood and four other properties over Rs 27 crore tax dues


BMC

The Brihanmumbai Municipal Corporation (BMC) has initiated a stringent crackdown on chronic property tax defaulters, publishing a notice that five prominent properties, including the well-known Hotel Oakwood in Juhu, will be auctioned to recover outstanding dues totalling more than Rs 27 crore.

According to the notice, the defaulters have been given a final 21-day window to clear their arrears. Failure to pay will result in the assets being sold at auction. The list of properties, as reported by TOI, comprises a mix of commercial and residential assets: a hotel, a plot of land, land belonging to a housing society and a house with adjoining shops.

The action is part of a broader, escalating effort by the civic authority to bolster its revenue collection. A civic official confirmed to TOI that this is merely the beginning, stating, "This is part of an ongoing process. We will soon be issuing a notice for the auctioning of 10 other properties too."

The BMC has outlined a meticulous, multi-stage legal procedure that precedes the drastic step of an auction. Officials explained that the process is designed to offer ample opportunity for defaulters to settle their debts. It begins with a penalty levied after the initial due date, followed by a series of demand notices with 21-day and 7-day payment windows.

If these notices are ignored, the corporation moves to attach the property. Even at this advanced stage, a lifeline is offered. "If the party pays 50 per cent of the amount and gives a post-dated cheque for the rest of the amount, then further action is stopped temporarily," the official clarified, TOI reported.

The BMC reportedly proceeds with seizure and the requisite legal vetting for an auction only after all prior measures have failed. A civic official emphasised the corporation's commitment to due process, stating that before any auction is conducted, notices are served in person and pasted on the property itself, ensuring the party is given sufficient time to respond. This rigorous procedure is intended to prevent future legal complications.