Mumbai: After giving Mumbai Metro One Private Limited (MMOPL) two days to clear the property tax dues last week, the Brihanmumbai Municipal Corporation (BMC) officials on Monday said a final decision on the same will be taken up soon. Meanwhile, the MMOPL authorities have filed a writ petition in the Bombay High Court (HC) on this issue.
The MMOPL owes outstanding property tax worth ₹300 crore to the BMC since 2013. On March 24, a team of civic officials visited multiple properties of MMOPL, including the DN Nagar Metro station, in order to disconnect the water supply and sewage lines, which is a regular action taken by BMC officials against tax defaulters. However, they did not disconnect the lines and said they gave the MMOPL two days’ time to clear the dues.
The MMOPL authorities had maintained on March 24 that they had requested the BMC to withdraw the notices issued to them and implement the directives of the state government which exempts MMOPL from paying property and municipal taxes.
“The decision regarding the next course of action is under consideration and final call will be taken after careful analysis,” said Vishvas Mote, assistant municipal commissioner and in charge of Assessment and Collection (A&C) department in Mumbai.
Senior officials of the BMC also maintained that the directives of the state government that exempts the MMOPL from paying municipal taxes was issued in 2018. “The directives allow relaxations in certain tax brackets from 2009 onwards. However, the MMOPL needs to pay if there are any outstanding dues before 2009. Also, the waiver only relaxes the property tax rates. Therefore, the MMOPL will have to pay all the outstanding water and sewage charges till date in full settlement as per norms,” said P Velrasu, additional municipal commissioner (Projects).
{{/usCountry}}Senior officials of the BMC also maintained that the directives of the state government that exempts the MMOPL from paying municipal taxes was issued in 2018. “The directives allow relaxations in certain tax brackets from 2009 onwards. However, the MMOPL needs to pay if there are any outstanding dues before 2009. Also, the waiver only relaxes the property tax rates. Therefore, the MMOPL will have to pay all the outstanding water and sewage charges till date in full settlement as per norms,” said P Velrasu, additional municipal commissioner (Projects).
{{/usCountry}}“Also, to avail the waiver, MMOPL has to make an official appeal to the BMC, which they haven’t done yet. They have only given us presentations on this matter,” Velrasu added.
MMOPL officials confirmed that they have filed a writ petition in Bombay HC on this issue but added that they will not be able to make any further comment on the same considering the matter is subjudice.
On March 24, the MMOPL in a statement had said that the Metro Line-1 comes under the Metro Act and is recognised as a railway administrator, therefore they are exempted from paying municipal taxes under the Railways Act.
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