Rs1,702-crore tax exemption for Metro: HC tells Maharashtra government to make up its mind
The MMOPL had approached the high court seeking exemption from payment of municipal taxes for Metro line-1 connecting Ghatkopar with Versova in Andherimumbai Updated: Aug 18, 2017 12:24 IST
The Bombay high court on Tuesday directed the Maharashtra government to decide on the Mumbai Metro One Private Limited’s plea seeking exemption from paying Rs1,702 crore towards property taxes and octroi within three months.
The MMOPL had approached the high court seeking exemption from payment of municipal taxes for Metro line-1 connecting Ghatkopar with Versova in Andheri.
The Metro operator wants the state government to ask the BMC to exempt them from the payment or decide the “legal status of the Metro line”.
In its presentation to the state in December 2016, MMOPL questioned BMC’s argument that the Metro line was tramway — being a rail-guided mass rapid transit system having a dedicated right of way – and so was not entitled to exemption from payment of municipal taxes, a facility which is available to “railways”.
The MMOPL claimed they were facing acute financial problems and had accumulated huge losses.
The estimated project cost had escalated to Rs4,026 crore from Rs2,356 crore, in addition to the net loss of Rs277 crore in the first year of operation. The net loss rose to Rs287 crore in the subsequent financial year and was Rs278 crore was recorded in the last financial year.
Responding to the petition, additional government pleader Abhay Patki said they would decide on the MMOPL’s plea within six months. A division bench of justice Anoop Mohta and justice Anuja Prabhudessai directed the government to decide on it as expeditiously as possible.
First Published: Aug 18, 2017 12:24 IST