Mumbai: BMC notice to Metro contractors over property tax default

17 April,2024 06:45 AM IST |  Mumbai  |  Rajendra B. Aklekar

Five contractors involved in Mumbai’s metro rail project receive a seven-day ultimatum from the BMC for non-payment of hefty property tax dues

According to the agreement between MMRCL, the respective contractors are solely responsible for the payment of property tax related to the use of this plot. Representation pic


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The Brihanmumbai Municipal Corporation (BMC) has slapped a seven-day final notice to five contractors working on the Mumbai Metro Rail Corporation (MMRCL) for non-payment of property tax worth around Rs 326 crore. The BMC earlier informed these contractors to pay the tax within 21 days by issuing a notice in March 2024. However, due to non-payment of tax by the contractors within this period, a final notice of seven days has now been issued. MMRCL is building Mumbai's first underground Metro Aqua Line 3.

"Efforts are underway to achieve the target of tax collection on behalf of the Assessment and Collection Department. The last date for payment of property tax for the financial year 2023-24 is May 25. Metro Rail Project works are underway in Mumbai Metropolis on behalf of Mumbai Metro Rail Corporation Limited (MMRCL). For this purpose, land has been made available for casting from MMRCL to the contractor companies M/s CEC-ITD, M/s L&T Stake JV, M/s Dogus Soma, M/s HCC-MMS-1, M/s HCC-MMS-2 at Wadala Truck Base for metro work," an official said.

According to the agreement between MMRCL, the respective contractors are solely responsible for the payment of property tax related to the use of this plot. All these five contractors have property tax outstanding of Rs 326 crore 22 lakh 69 thousand 846 rupees (Rs 326,2269,846).

"Four of these contractors have not paid tax to date from the financial year 2016-17 despite repeated instructions. So, the contractor HCC-MMC has arrears of property tax from the financial year 2010-11. Hence the BMC had slapped a notice to the concerned contractors to pay the tax within 21 days.

The 21-day payment period expired on April 15 2024. As they did not pay the tax even within these 21 days, on April 16 they were issued seven seven-day notices," he added. BMC officials said that if the contractors do not pay the tax within these seven days, action will be taken to arrest and confiscate their property.

Rs 326 cr
Total worth of unpaid property tax

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