Bmc demanding tax for non existing property

Sep 30, 2026 195 views 3 answers
Property Law
Anonymous
Sep 30, 2026
Property Law
► my father had purchased one chawl from one lady in 1970 through registered agreement in sub registrar Bombay along with lease tenancy rights. the seller lady had taken land on lease from F.E.Dinshawestate.this trust has a huge land from dahisar to bandra which they had given on lease later on in 1995 this trust declared offer of making lease hold property freehold by auction in this auction the lady appeared and purchased the land which my father had purchased along with lease right from her. later she sold land to builder who without our consent developed our chawl in SRA scheme. the said developer didn't gave us a single penny. I had filed case in high power committee of SRA and was called for hearing also in 2008 but as I was unaware of the situation and so I went wi8any advocate with me and the builder had already preplanned with his power and money in committee so they did not at all listen to me. On the contrary they all threatened me to withdraw the case otherwise they will put me in jail for bla bla reasons. I was alone and so i withdraw but I had mentioned that I had no advocate with me and I myself can't fight his case so I m withdrawing.the building in constructed on 2010 but even today the tax bills are coming in my father name of the chawl in fact the chawl is not existing. Yesterday on 29 september 2026 i received message on WhatsApp and email regarding property tax dues from 2012 to 2020 which amounts to be 78k including penalties. Now please advise me what to do in this matter we already had not received a single penny or any flat in redevelopment from builder and had lost over Property and now bmc is demanding tax from us and that to for the period where the property was not at all existing. Also advice can we get our consideration of this property in terms of flat or money from builders.
195 views
3 answers

3 Answers

Oct 04, 2026

Dear Client, 

First confirm the demand is genuine on the official BMC portal or at the ward office. If it is, send a written objection to the ward's Assessor & Collector saying the chawl was demolished under an SRA scheme and the building was completed in 2010. Attach proof and ask BMC to delete your father's assessment and cancel the arrears and penalty. Tax on a demolished structure continues as tax on the land and falls on whoever owns or holds the land now, which is the developer or society, not a former tenant. If your father has died, apply as his legal heir. Ask in an RTI for the assessment history and demolition date. If the demand is a fresh assessment for old years, ask an advocate to check the time limit under Section 216B. If BMC refuses, the statutory remedy is an appeal to the Small Causes Court under Section 217, where a deposit requirement may apply, and civil suits are generally barred. A High Court writ is possible because the structure no longer exists, but the court may ask you to use the appeal first. 

Secondly, the 1970 registered agreement, the lease rights, and the lady's 1995 purchase, benefits your father under Section 43 of the Transfer of Property Act, depending on exactly what was transferred to him. The main issue is limitation. Suits for possession expire twelve years after dispossession (about 2008 to 2010), and suits for declaration or cancellation three years after knowledge.

Thirdly file RTIs with the SRA for the scheme file, eligibility list and your 2008 committee file. If your father was wrongly left out despite living there, you can represent to the SRA and then file a High Court writ. A criminal complaint for cheating has no limitation bar, but courts treat these as civil disputes, and the 2008 threats are time-barred. Collect the 1970 agreement and all receipts and see an SRA or High Court practitioner.

Anik
Oct 04, 2026

Dear Client

Property tax demand and the demand in connection with the redevelopment are different issues and must be dealt with separately. One should not overlook the BMC demand simply because the original building has been demolished.

First, one should get all the property tax valuation documents from the BMC, which will include the property account number and the reasons for showing the name of your father still there. A written protest should be filed explaining that the original building has been demolished and asking BMC to confirm the current status for the years 2012-2020.

The extent to which you could have a potential claim will depend largely on the type of registered agreement, tenancy/leasehold interest your father had, the transaction made in 1995, SRA records, permissions for redevelopment, your occupancy status as a tenant, and any agreements or consent forms used during redevelopment.

Notwithstanding the fact that you did not get a flat, nor did you receive anything, your case requires the examination of the redevelopment records.

Get the full record of the SRA case, including the list of eligible persons, scheme approval, the proposal of the developer, consent forms, rehabilitation and order in connection with your previous complaints. Also get the record on how the land was disposed of, and how your father's interest was dealt with.

Given the fact that the redevelopment happened some years back, the issues of limitation and delay become relevant. A lawyer would need to look at the documents before determining the viability of any claims for rehabilitation, compensation, declaration, etc.

I hope this answer helps. If you have any further query kindly do not hesitate to contact us. Thank you.

Sep 30, 2026

Dear Client,

Based on the facts provided, this is a complex SRA/redevelopment and title dispute, and the old registered agreement, lease documents and subsequent 1995 auction records will be very important. The BMC property-tax demand should not be ignored, but you can challenge the liability/assessment, particularly if the old chawl was demolished and the property was redeveloped without your consent. You should immediately obtain the complete BMC assessment/property-tax record and verify in whose name the property is presently assessed. You should also collect your father’s 1970 registered agreement, lease documents, 1995 auction documents, SRA proceedings, redevelopment approvals and all available records showing that you were not given any flat or consideration. The possibility of claiming a flat, monetary compensation or other relief from the developer cannot be ruled out, but it will depend on the exact rights created by the 1970 transaction, the 1995 transfer, SRA records and limitation issues. Since the redevelopment took place around 2010, limitation and delay will need particularly careful examination. I recommend that you first send a written objection to BMC regarding the ₹78,000 demand and simultaneously obtain the complete SRA/developer file through appropriate records/RTI. These documents should then be examined to determine whether proceedings for recovery of your property/redevelopment rights, compensation, or other appropriate relief against the developer and concerned parties can still be maintained.

you may opt for a one-on-one consultation with our office.

Hope this clarifies your position.

OLQ LAW FIRM

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