Pay up or payments will be withheld, Metro contractors told

Additional municipal commissioner (city) Ashwini Joshi had passed speaking orders on March 27, 2024, that the contractors were liable to pay the property tax. HT was the first to report on April 2, 2024, that the BMC had slapped a property tax bill on them

MUMBAI: The Mumbai Metro Rail Corporation Ltd (MMRCL) has issued a notice to two contractors of Metro Line 3, or the Aqua Line, saying it will withhold payments to them due to non-payment of property tax to the Brihanmumbai Municipal Corporation (BMC). The sum amounts to ₹152.05 crore.

Mumbai, India. April 01,2024 : The Brihanmumbai Municipal Corporation (BMC) sent property notices to Dogus Soma JV, HCC MMS JV and Continental ITD Cementation Tata Project JV Compony`s casting yard. April 01,2024. (Photo by Raju Shinde/HT Photo)

The BMC has billed two contractors – HCC MMS (JV) ₹53.17 crore and CEC-ITD (Continental ITD Cementation Tata Projects JV) ₹98.88 crore – for property tax for utilising a plot that belongs to the civic body. The plot, situated at the Wadala Truck Terminal, is being used by the contractors as a casting yard for the Mumbai Metro Line 3 project (Colaba-Bandra-Seepz).

Additional municipal commissioner (city) Ashwini Joshi had passed speaking orders on March 27, 2024, that the contractors were liable to pay the property tax. HT was the first to report on April 2, 2024, that the BMC had slapped a property tax bill on them.

The contractors then moved the Bombay high court and secured a stay in April 2024. The stay was extended from time to time. The matter came up for hearing on October 25, 2024, and the court directed that the ad-interim relief would continue till the next hearing, which is yet to take place.

The BMC then sent a notice to MMRCL on January 31, 2025, asking it to recover the dues from the contractors. In turn, MMRCL has sent a notice to HCC-MMS JV, dated March 13, stating, “We would like to bring to your attention that, in accordance with the approval received from the competent authority, MMRCL has decided to withhold the payment due to non-payment of property tax for the concerned property under your jurisdiction.”

The notice further stated that the action was being taken to safeguard the interests of MMRCL and to ensure compliance with all legal and financial obligations. “Due property tax from Brihanmumbai Municipal Corporation F/North Division along with penalty has been received by the Land Department regarding payment of property tax. We kindly request that you take immediate steps to clear the outstanding property tax,” the MMRCL notice to the contractors concluded.

Advocate Prerak Choudhary representing the contractors, said, “The BMC has charged Metro contractors with property tax in violation of Section 184 of the Railways Act, 1989, which carves out an exemption for land used in connection with railways (which includes the Metro railway).”

Choudhary also pointed out that the high court had granted ad-interim relief in April last year, and the contractors have been protected against coercive recovery of property taxes. “The actions of BMC and MMRCL of forcefully trying to recover property taxes from the contractors’ bills are clearly not justified and against the orders of the court. As the matter is sub-judice, all parties are expected to observe restraint till the court decides the dispute,” he said.

MMRCL was unavailable for comment.