Mumbai, Dec 20: Facing a severe fund crunch due to reduced fixed deposits, no new revenue sources, and costly high-profile projects that have pushed liabilities to a staggering Rs 1.93 lakh crore, the BMC has written to the state government. The civic body has urged various departments to clear pending dues, which have now ballooned to Rs 10,900 crore.
State government dues rise sharply in one year
According to BMC data, state government dues have risen by Rs 1,200 crore over the past one year, from Rs 9,600 crore in November 2024 to Rs 10,900 crore as of December 2025, across 20 departments. A civic official said the dues include property and water taxes.
Education department tops arrears list
“The Education Department accounts for the largest share, with arrears climbing from Rs 6,500 crore to around Rs 7,000 crore. Significant arrears are also pending from the Housing, Public Health, Irrigation and Public Works departments,” he added.
Civic body urges urgent recovery amid development push
“For the recovery or adjustment of outstanding dues, the relevant civic departments are pursuing vigorous follow-up. Considering the scale of ongoing development work in Mumbai, substantial funds are needed, and we urge the government to release the payments owed by various state departments,” said an official. As per civic sources, over the past five years the BMC has recovered only Rs 243 crore from government agencies.
Outstanding property tax touches Rs 22,000 crore
Property tax is the primary source of revenue for the Municipal Corporation, yet cumulative outstanding dues dating back to 2010 have ballooned to Rs 22,000 crore, including 15 years of penalties.
The arrears also include unpaid dues from major government agencies such as the Mumbai Metropolitan Region Development Authority (MMRDA) and the Maharashtra Housing and Area Development Authority (MHADA).
Activists demand action against defaulters
Godfrey Pimenta, founder of the WatchDog Foundation, in a letter to Municipal Commissioner Bhushan Gagrani, demanded that the BMC recover outstanding property tax from these government agencies without delay. He questioned why honest taxpayers should bear the burden of those who fail to pay.
Mega infrastructure projects strain civic finances
Several big-ticket ongoing infrastructure projects undertaken by the BMC, which require substantial funding, include the Rs 14,000-crore Goregaon–Mulund Link Road, the Rs 16,000-crore Mumbai Coastal Road Phase 2 connecting Versova to Dahisar, the Rs 3,000-crore Dahisar–Bhayander elevated link road, a Rs 4,000-crore desalination plant at Manori in the western suburbs, Rs 27,000 crore for upgrading seven sewage treatment plants, and the Rs 3,000-crore Gargai dam project.
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