illegal cutting trees without owners permission

No, Municipal Corporation cannot get the tree.  

According to the Indian Forest Act, each state has laid down its own rules and regulations against felling of trees. For cutting down trees that are blocking your way, whose branches are spreading to your house or blocking hoardings, you need to take a clearance from the Forest department.

If Municipal Corporation had obtained the permises then they can get the tree, if not, then you can complaint to Forest Department