Property tax nonpayment and division of BMC auction proceeds
3 years ago
We (mother, father and I) live in Mumbai. We received a property tax demand notice a few days ago pasted on our door. My father is notorious for never paying anything on time, including the home loan EMIs, maintenance, electricity etc. There is still an outstanding bank loan of 10-15 lakhs, for which there's probably some 12-13 years left to repay, and the maintenance outstanding is now 4 lakhs. The property's current value is around 1 crore.
We had received something similar from the BMC 3 or 4 years ago. Something on yellow papers about attachment. However, nothing happened. It's important to note that we are not on talking terms with him despite living in the same apartment.
This apartment's sale deed is in both their names. The maintenance bill has both their names too. However the property tax bill arrives under his name only. The amount on the notice is around 2.5lakh.
Who is liable to pay? If he doesn't pay up, what happens? Can the BMC freeze bank accounts? Whose bank accounts can or will they freeze?
If the BMC decided to seize and auction this home, what happens next? How long does the sale process take? Who gets the money from the sale if the BMC auctions the home? Will my father receive all the proceeds from the sale after the BMC takes what's rightfully theirs? Or will they divide the amount amongst the property owners i.e. my mum and dad?
Ayantika Mondal @ Prime Legal
Responded 3 years ago
The person who obtained the loan will be liable to repay it. In case of default, the bank will serve due notice before taking possession of the house. They will then dispose it to recover their investment, under the SARFAESI Act. The remaining profits after such a sale will be distributed equally between your father and mother, as they are both co-owners according to the sale deed.
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the person who obtained the loan will be liable to repay it. If they are unable to do so, then the bank will send notice of the default before eventually taking possession of and disposing the property under the SARFAESI Act. If the deed is in both their names, they are both entitled to receive equal shares of the remainder fate the bank has recovered its dues.
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