Brihanmumbai Municipal Corporation Imposes Double Property Tax for Non-Marathi Signboards

April 9, 2024

The Brihanmumbai Municipal Corporation (BMC) has announced that starting May 1, 2024, shops and establishments in Mumbai that fail to display signboards in Marathi or Devanagari script will face double property tax. This move comes as part of the BMC’s efforts to enforce the use of Marathi language on signboards, aligning with the Maharashtra Shops and Establishments Rules and a recent Supreme Court directive.

Recent Context

The BMC’s decision was approved during a review meeting chaired by the BMC commissioner-cum-administrator Bhushan Gagrani, considering the compliance deadline set by the Supreme Court. The court had previously given a two-month window for shops and establishments to display Marathi language or Devanagari script on their signboards before the November 23, 2023 deadline.

Compliance Drive and Penalties

Following the Supreme Court’s order, the BMC launched a compliance drive on November 28, 2023, to check whether establishments had adhered to the language requirement. During the drive, the BMC found that 96.50% of the 87,047 checked establishments had Marathi signboards. However, 3,040 establishments were served with legal notices for non-compliance, with cases either pending in court or being resolved administratively.

Illuminated Boards and License Renewal Costs

In addition to the double property tax penalty, the BMC has announced that it will revoke the licenses of illuminated boards that lack Marathi or Devanagari lettering. The license renewal costs for such boards range from Rs 25,000 to Rs 1.5 lakh, adding to the financial burden on non-compliant establishments.

Legal Proceedings and Fines

Some cases related to non-compliance with the Marathi signboard rule are being heard in court, while others are being settled through an administrative method as per the provisions of the relevant Act. The BMC has imposed fines totaling Rs 32 lakh on 343 cases handled internally and Rs 13.94 lakh on 177 cases heard in court.

Significance of Property Tax Collection

The BMC’s strict enforcement of the Marathi signboard rule comes in the context of its substantial property tax collection. In the financial year 2023-24, the BMC collected Rs 3,196 crore in property tax. The double property tax penalty for non-compliant establishments is expected to further boost the BMC’s revenue collection while ensuring adherence to the language requirements for signboards.

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