BMC to Tax Commercial Units in Mumbai Slums, Clarifies No Legalization of Illegal Structures

The move aims to generate ₹350 crore in revenue while addressing concerns about the legal status of unauthorized constructions.

The Brihanmumbai Municipal Corporation (BMC) will levy property tax on commercial establishments in slum areas, targeting 50,000 units used for businesses like shops, industries, and hotels.
The initiative is expected to generate an additional ₹350 crore in revenue for the 2025-26 fiscal year, as announced in the recent budget.
BMC clarified that imposing taxes on unauthorized structures does not grant them legal status, citing Section 152(A) of the Mumbai Municipal Corporation Act of 1888.
A survey has been launched to assess these commercial units and ensure fair tax collection for infrastructure services provided by the BMC.
In a related effort, BMC is developing a policy to impose separate water and sewerage charges on unmetered residential properties under 500 sq. ft., following a property tax waiver for such units in 2022.