_pages-to-jpg-0001.jpg)
The Brihanmumbai Municipal Corporation (BMC) is set to make history by auctioning four properties in Mumbai for the first time in four decades. The online auction, scheduled for October 29, aims to generate a minimum revenue of Rs 120.53 crore, as the civic body seeks new ways to bolster its finances.
The four properties up for sale represent a mix of land parcels and private houses across the city. Among them is a land parcel belonging to Shanti Sadan CHS in Chunabhatti, covering 2,500 square meters, with a base price of Rs 47.09 crore. Another plot owned by the Housing Commissioner of Bombay, spanning 3,000 square meters, has a base price of Rs 37 crore. A privately owned house with shops in South Mumbai’s bustling Kalbadevi area, measuring 1,648 square meters, has been set at Rs 26.01 crore. Lastly, the Rajani Bungalow in Borivali, a private property covering 624 square meters, will be auctioned with a base price of Rs 10.43 crore.
Deputy Municipal Commissioner Vishwash Shankarwar explained, “We have listed all four properties and issued public notices about the auction. The registration process is ongoing, and the online auction will take place on October 29, when buyers can submit their bids.”
This move comes as the BMC seeks to address a dip in its finances over the past few years. Data shows that the civic body’s fixed deposits have declined significantly from Rs 91,690 crore in 2021-22 to Rs 79,498 crore in 2024-25—a drop of nearly Rs 12,000 crore. In February, Municipal Commissioner Bhushan Gagrani had announced several revenue-generation measures during the city’s budget presentation.
Earlier this year, the BMC introduced a series of first-ever initiatives to raise funds. This included selling 426 housing units and leasing out plots to private stakeholders, diversifying its revenue streams beyond traditional property taxes. Property tax remains one of the BMC’s most significant sources of revenue, with the civic body collecting Rs 6,011 crore this year against a target of Rs 6,200 crore, marking the highest-ever collection in its history.
The auctioned properties have primarily been seized due to owners defaulting on property tax payments. Typically, when property owners fail to pay their dues, the BMC sends notices with penalties. Continued default can lead to temporary seizure or attachment of the property, following legal procedures, and eventually, auction.
The legal complexity of these properties has contributed to the delay in auctioning. Many of the properties had multiple owners, which complicated tax liability. For instance, the Rajani Bungalow has seven owners, and disputes over who was responsible for paying taxes kept the property tied up in legal proceedings for years. The BMC clarified that any dues recovered from the auction would be distributed among owners if balances remain after the sale.
Originally, five properties were listed for auction. However, one property owner settled their dues just before the public notice was issued, leaving four properties for the October 29 sale. The base price of each property has been determined using ready reckoner rates, ensuring transparency and alignment with market values.
To manage the auction efficiently, the BMC has appointed an external agency to conduct the bidding process. Officials emphasized that a minimum of three bidders must participate for the auction to be considered successful. If the response is insufficient, a re-auction may be scheduled to ensure fair competition and optimum revenue generation.
This auction marks a significant milestone for Mumbai, reflecting both the city’s growing real estate values and the BMC’s efforts to modernize its revenue-generation strategies. With online auctions, greater transparency, and clear legal frameworks, the civic body aims to streamline property recovery and strengthen its finances while adhering to due process.
