Property tax : Builders to be held accountable?

Paying taxes

Flat buyers are often kept in the dark about the property taxes due on their plot/flat at the time of possession. Only later do they realize that they have been shortchanged by the builder/developer when they are slapped Property Tax Due Certificate by the Municipal Corporation, which sometimes can be to the tune of a few lakhs!
It helps to remember that until the possession of the flat is handed over to the flat buyer, all taxes due on the flat/plot,are payable by whoever owns the flat/plot, which in most cases is the builder/developer. Often with the connivance of the Municipal corporations, the builder escaped payment of this tax.The Municipal corporation, which can easily make it mandatory for the builders to pay all liable taxes before handing over the Occupancy Certificate for the flat/building, happily chose to look the other way.
All this is set to change if the Minister for Urban Development, Mr.Bhaskar Jadhav, is to be believed.
According to the new rules proposed by the Minister..

  • Builders will have to pay property tax for 3 years at the time of issuance of the Commencement Certificate and if the construction is not complete at the end of 3 years,he will be liable to pay property tax for the next 3 years !

Recently, the Municipal corporation had issued more than 3.22 lakh flat owners across the city. After the opposition leader in the legislative assembly, Mr.Eknath Khadse, took up the issue, the govt changed its tune to revoke the property tax due certificate for recently completed buildings where Occupancy certificate has been issued recently but property tax has not yet been paid by the builder.

As an icing on the cake,the minister informed the house that Govt agencies like the MMRDA,SRA,Mhada along with the private builders,owed more than 10,000 crores in property tax !! Embarrassed smile

Just how and when these ideal solutions are implemented is anybody’s guess.

8 Thoughts

  1. HI,
    I just want to know that NMMC Property Tax Name Transfer(Society –>First Owner –> Second owner) will rquire 2 Transfer charges or only 1 Charge. Property Tax is on society name.was not changed to first owner name.


      1. Property is in KoperKhairane ,Navi Mumbai only.Income tax bill comes on Society name(1st owner did not take it transferred to his name).I need to know whether 2nd owner need to pay 2 transfer charges(Society –>First Owner –> Second owner) to NMMC or It can be transferred to second owner name directly from society name with 1 transfer Charge.


  2. Sir, I have a similar question, about which kindly advise. I have purchased a 2BHK flat in Sec-15, CBD belapur in 2005, in resale. The society is registered. Conveyance is not completed yet.Till date all property-tax six-monthly bill for the flat have been paid regularly, but the bills come in the name of the Developer. Recently when I asked my society manager to get the bill transferred in my name, he informed that an amount of Rs 30,000 would have to be paid and a receipt for the same provided, apart from the usual bribe. Sir, to the previous question you have advised that name transfer charges in NMMC are negligible, so I am confused. Could you advise the procedure to be followed for this job. Thanks.


    1. For the property tax reciept to come in your name,the property has to be conveyed in the name of the society.Once the society gets the conveyance,this problem will be solved.Society manager is not being accurate.Property tax bill comes in the name of whoever is the owner of the property in Municipal records.Once society gets the conveyance,issue will be solved.


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