Metro contractors threaten BMC with contempt of court in property tax dispute
MUMBAI: Two Metro Rail contractors have sent a legal notice to the BMC and the Mumbai Metro Rail Corporation Ltd (MMRCL), demanding that their withheld payments over alleged non-payment of property tax dues be released, failing which they will file for contempt of court.
The contractors' contention is that no property tax is applicable, as Section 184 of the Railways Act, 1989 exempts the casting yard used for working on Metro Rail projects from property taxes. Their legal notice adds that the action of the BMC and MMRCL is in violation of a Bombay high court order that granted ad interim reliefs to them against the coercive recovery of property taxes.
Of the two contractors, HCC MMS (JV) was slapped with a property tax bill of ₹53.17crore while Dogus Soma (JV) received a bill of ₹97.17 crore for utilising a plot that belonged to the BMC. The plot, situated at the Wadala Truck Terminal, is being used by the contractors as a casting yard for the Metro Line 3 project (Colaba-Bandra-SEEPZ). The contractors have also stated in their notice dated April 21 that they will halt the Metro construction work if the payments are not released soon by MMRCL.
HT was the first to report, on March 18, that the contractors had been issued a notice by MMRCL to clear the property tax due to the BMC, failing which their payments would be withheld by MMRCL.
Last year, after additional municipal commissioner (city) Ashwini Joshi passed speaking orders on March 27, 2024 that the contractors were liable to pay the property tax, the contractors moved the HC against the BMC's notice and secured a stay in April. 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.
On January 31, 2025, the BMC sent a notice to MMRCL, asking it to recover the dues from the contractors. MMRCL, in turn, sent a notice to the contractors on March 13 that it would withhold payments if property tax dues were not paid. The notice stated that the action was being taken to safeguard the interests of MMRCL and to ensure compliance with all legal and financial obligations.
Aggrieved by MMRCL's notice, the two contractors have now issued notices to the BMC, requesting the release of their payments, failing which action will be initiated for contempt of court.
Advocate Prerak Choudhary who issued the contempt notice on behalf of the two contractors, told HT, 'The actions of the BMC and MMRCL are not only a violation of law, being contrary to Section 184 of the Railways Act, but also a blatant violation of the ad interim orders of the high court. Such action is nothing short of contempt of court, and if payments are not released, the contractors will take such further legal action as may be required, including filing a contempt petition before the HC.'
Ashwini Joshi, when contacted, said she had not yet received a copy of the contempt notice. 'It is MMRCL that has stopped their payment,' she said. 'So why are they issuing a contempt notice to the BMC? Their agreement with MMRCL states that the burden of property tax lies with them. The BMC is just doing its duty by issuing property tax bills.'
MMRCL didnot respond to request for comment.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
4 hours ago
- Time of India
Task force set up for integrated bus transport services in MMR
Mumbai: State govt on Tuesday set up a task force to create a roadmap for integrated bus transport services and seamless ticketing in the Mumbai Metropolitan Region (MMR). The 12-member task force will be headed by BEST general manager S V R Srinivas, and include senior officials from BMC, MMRDA, and municipal commissioners of all local corporations in MMR, including Ulhasnagar and Bhiwandi-Nizampura. NITI Aayog, in its report submitted to govt in 2024, had recommended making the MMR a growth hub (G-Hub) with a $300 billion economy by 2030 from the present $140 billion. In Feb, govt appointed a nine-member Project Management Unit, headed by the housing department's additional chief secretary, for the implementation of the G-Hub report. In the review meeting on the G-Hub plan in April, CM Devendra Fadnavis gave directions to set up the task force to prepare the Integrated Bus Transportation Plan for MMR.
Time of India
4 hours ago
- Time of India
NCMC card for seamless tap & travel on Metro 3 launched
Mumbai: The Mumbai Metro Rail Corporation Ltd (MMRC) on Monday launched the RuPay National Common Mobility Card (NCMC) for Metro Line 3 commuters. The NCMC card, introduced in partnership with the National Payments Corporation of India (NPCI) and the State Bank of India (SBI), allows passengers to "tap and travel" across Metro Line 3's operational stretch—from Aarey JVLR to Acharya Atre Chowk. The card offers a secure, cashless travel solution and aims to eliminate queues at ticket counters. The launch event was held in the presence of state CM Devendra Fadnavis and DCMs Eknath Shinde and Ajit Pawar, and other top dignitaries. MMRC managing director Ashwini Bhide said, "The integration of NCMC with Mumbai Metro Line 3 is a significant milestone in building future-ready, smart infrastructure." The NCMC card will also be interoperable across Metro Lines 1, 2A, and 7, as well as with other transport systems such as the Chalo bus service. Cards issued by these operators can also be used at Line 3 stations, ensuring a unified transit experience. Existing NCMC cardholders can begin using cards on Line 3 from June 11. New users can get the cards at any of the seven Line 3 stations or designated SBI branches. The cards will be issued for free with a mandatory initial top-up of Rs 100.
Time of India
5 hours ago
- Time of India
BMC to get 4th time lucky? 21 cos keen to set up desalination plant
Mumbai: As many as 21 companies, including one from the Middle East and another from Spain, have shown interest in BMC's fresh tender for the design, construction, and commissioning of a 200 million litres per day (MLD) desalination plant at Manori in Malad (W). Officials said the response was significantly better than the previous three attempts, when not more than six companies evinced initial interest and failed to qualify. The last tender was scrapped in 2024 following insufficient bids. The estimated project cost has been pegged at Rs 3,000-Rs 3,200 crore, higher than the initial tender's Rs 2,000 crore. The tender, issued by the BMC's water supply projects department, calls for the installation of a seawater reverse osmosis system and includes the operation and maintenance of the plant for a period of 20 years. The project aims to augment Mumbai's drinking water supply, which is under strain due to increasing population and urbanisation. Mumbai faces a 15% daily water supply shortfall as the 4,664MLD required demand is not fully met by BMC's 3,975MLD supply, mostly due to pipeline losses. Additional municipal commissioner Abhijit Bangar said, "This time, there seems to be a good response to the tender probably as it's an engineering, procurement and consultation tender. For the new plant, three tunnels have been planned, of which two will be for intaking the water, while one will be like an outfall discharging the inert remains. We will be pulling water from at least 2-3km away from the shoreline where the sea is deep as it will be less polluted. " The Swiss Challenge method was applied in the previous tenders. Under this method, an unsolicited proposal — such as the one submitted by an Israeli desalination firm under a 2022 MoU — is put to competitive bidding, with the original proposer having the right to match the best bid. This model has been dropped to attract more bidders.
