The Maharashtra government has now served the Taj Mahal Palace Hotel in Apollo Bunder a 15-day ultimatum, asking it to pay the nearly Rs 7 crore it owes in dues to the Brihanmumbai Municipal Corporation for occupying the road and footpath outside the hotel premises.
Announcing this in the legislative council, minister of state for urban development Ranjit Patil said the hotel, along with another luxury hotel, Trident, in Nariman Point, had been given permission to barricade the surrounding footpath as a security measure.
Taj has occupied 1,386 square metres outside its compound whereas Trident occupied 59 square metres.
The BMC had charged the Taj nearly Rs 7 crore, whereas the Trident had to pay Rs 16.09 lakh, of which it has paid Rs 14.76 lakh, Patil said.
Patil said the Taj has not yet paid its dues and hence, the government had now given it 15 days to pay up.
The BMC, in April, had asked the hotel to pay Rs 6 crore as dues for occupying a portion of the road as well as the footpath by creating flower beds and putting up barricades between June 2009 and March 31, 2015.