THANE: The Thane Municipal Corporation (TMC) has stepped up its property tax recovery drive amid mounting financial stress, launching stringent action against defaulters as it struggles to bridge a widening revenue gap. The civic body set a property tax collection target of ₹920 crores for the current financial year, of which ₹630 crores have been collected so far.
Facing a significant post-pandemic shortfall, the civic body has begun seizing and sealing properties and disconnecting water supply connections of chronic defaulters. The administration has also warned that the names of major defaulters will be published in newspapers if dues are not cleared before the close of the 2025–26 financial year.
As part of the crackdown, TMC has so far seized 523 properties, sealed 223 premises and disconnected water supply to 1,206 defaulters. Municipal commissioner Saurabh Rao has directed officials to intensify action against large outstanding taxpayers, stating that meeting the annual revenue target would be difficult without firm enforcement.
For 2025–26, TMC approved a budget of ₹5,645 crore, earmarked for infrastructure projects, education, environmental initiatives and welfare schemes. However, revenue collections have lagged behind projections. Tax inflows had sharply declined during the COVID-19 pandemic, and the anticipated recovery has not fully materialised, leaving the civic body under continued financial strain.
The crunch has affected the corporation’s ability to clear contractor payments, fund ongoing development works and meet salary commitments. In some cases, it has had to rely heavily on government grants even for routine expenditure.
TMC had set a property tax collection target of ₹920 crore for the current financial year. With ₹630 crore collected so far, which is about 69 per cent of the target. The corporation must recover the remaining ₹290 crore within a month, a task officials admit will be challenging.
Simultaneously, the civic body has introduced facilitation measures to encourage voluntary compliance. Ward-level tax offices are functioning on weekends, and special camps are being organised in large housing societies, where teams visit premises to collect dues. Awareness campaigns have also been intensified through multiple communication channels.
With property tax, water charges and development fees forming key revenue streams, strengthening collections has become critical for fiscal stability. The coming weeks will determine whether stricter enforcement, combined with outreach efforts, can help TMC narrow its revenue gap and ease its financial burden.