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The Pune Municipal Corporation (PMC) plans to levy additional property tax on developers who put up illegal constructions, as a penalty and as a way to recover demolition costs. Pravin Shende, a senior official in the corporation’s building permission department, said the measure is meant to deter unauthorized building. No rate or start date has been announced.
What PMC Said
Shende said developers involved in illegal construction will have to pay extra property tax as a penalty. The corporation intends to recover what it spends on demolition by imposing the additional tax on the developers’ other properties.
He said the move is not only about recovering expenses but also about deterrence, because developers would no longer be able to get away with illegal building. He added that the corporation will intensify action in the coming days. This is a stated intention. The report does not describe a notified order.
Cost of Demolition
PMC bears the cost of demolition drives. That includes workers and heavy machinery such as earthmovers and jaw cutters, along with rent, fuel, daily wages and police protection fees. For a typical 1,000 sq ft illegal construction, the estimated demolition charge is around ₹1 lakh, according to the report.
The corporation has also taken action against unauthorised structures in other parts of Pune. In a separate drive, it demolished illegal constructions covering 78,000 sq ft in Lohegaon and Nagar Road.
Notices So Far
PMC officials said notices have been issued asking developers to repay demolition expenses, but most have ignored them. Only a handful have paid. The report does not say how many notices were sent for cost recovery or how much money is outstanding.
Separately, civic data shows PMC’s building permission and enforcement departments issued 24,000 notices under the Maharashtra Regional and Town Planning (MRTP) Act between 2020 and 2026 against unauthorised structures across various zones. These are notices against illegal structures, not demolition-cost recovery notices.
Why Illegal Construction Persists
Experts and activists cited in the report point to several factors. Migration into cities creates heavy demand for affordable housing, and high land prices push buyers towards cheaper, unapproved buildings. Some developers exploit that demand to maximize profit. Weak oversight by local administration, including rural civic bodies such as gram panchayats and PMC, and political interference slow action, they said. These are their assessments, not established findings.
For background on the legal process surrounding unauthorised construction and demolition, readers can refer to the legal requirements for demolishing a home.
Criticism
Vivek Velankar of Sajag Nagrik Manch, a citizens’ group, said the administration already struggles to recover actual property tax dues. In his view, adding more tax in the name of defaulters will prove to be an eyewash unless recovery actually happens.
The scale of existing tax collection is therefore relevant to the proposal. Homeowners can read Pune Municipal Corporation property tax and the 40% rebate for background on the city’s property-tax system.
What the Report Does Not Say
The report does not give:
- The rate of the additional tax or how it will be calculated
- The legal provision PMC will use
- A date from which the tax applies
- The number of developers or properties affected
- How much demolition cost is outstanding
What Happens Next
Shende said action will be intensified, but no timeline has been given. Whether the extra tax is notified and collected is not yet known.
Ans 1. PMC has recovered three times the normal property tax from commercial properties found with unauthorised construction. In a June 2023 drive, PMC assessed commercial properties, recovered thrice the amount of property tax and sealed some properties for unauthorized construction. The multiple has not been uniform across civic bodies and years. In Pimpri-Chinchwad, illegal constructions were penalised at twice the property tax payable under Section 267 ‘A’ of the Maharashtra Municipal Corporation Act from January 2008, and that penalty was later waived.
Ans 2. The Maharashtra Regional and Town Planning (MRTP) Act, 1966. The Bombay High Court has said civic bodies must issue notices, carry out demolition if violations persist, and prosecute the offenders under Sections 52 to 57 of the MRTP Act.
Ans 3. Not always, under the statute. The Bombay High Court has held that Section 52 of the MRTP Act does not require prior notice before demolition of unauthorized constructions, whereas Section 53 applies to authorized constructions that deviate from sanctioned plans and requires a notice. In practice, PMC says it issues a notice to the concerned landowners before taking action. This is general information, not legal advice.
Ans 4. Largely through property records and inspections. A geotagging survey run by the property tax department helps identify properties where owners built extra structures but kept paying tax on the old dimensions. In April 2026, PMC said it would conduct detailed inspections to identify changes in property usage and detect unauthorised constructions.
Ans 5. Yes. In October 2025, after a drive against pubs and restaurants in Vadgaon Sheri and Kalyani Nagar, PMC issued notices to 151 property owners and said it would impose an additional property tax of Rs 22.76 lakh on those found flouting regulations.