MMRCL releases metro contractors' dues amid property tax wrangle
MUMBAI: Amid the ongoing litigation over property tax dues, the BMC has clarified that it has not violated any court orders or initiated enforcement action against the metro rail contractors working on Mumbai Metro Line 3. This clarification follows a legal notice issued by two metro contractors to the BMC and Mumbai Metro Rail Corporation Ltd (MMRCL) on April 21 this year, threatening to halt construction over withheld payments.
Four private contractors—Dogus Soma JV, CEC-ITD JV, L&T STEC JV and HCC, had approached the Bombay high court, challenging the BMC's property tax demands under Section 184 of the Railways Act, 1989, which exempts railway land from such levies. They argued that the casting yard at Wadala Truck Terminal, used for Metro construction, falls under this exemption.
On March 18, Hindustan Times was the first to report that MMRCL had warned contractors that payments would be withheld unless they cleared their property tax dues with the BMC. The contractors had, in March last year, filed writ petitions, prompting the high court to restrain the BMC from taking coercive action through an interim order issued on April 30, 2024. This relief has since been extended.
In a letter dated May 14, 2025, the BMC informed its legal department that it stood by its position: casting yards are taxable, and contractors are jointly and severally liable.
Following a hearing on March 27 last year before additional municipal commissioner Ashwini Joshi, a formal order upheld the BMC's claims, and caveats were filed in court to protect its legal standing.
In its letter, of which HT has a copy, the BMC reiterated, 'Given the ongoing judicial proceedings, no fresh notices have been issued or enforcement action taken against the contractors.'
In view of the ongoing legal challenge, MMRCL has now released the contractors' withheld payments after securing an undertaking that links future tax settlement to contractual obligations. MMRCL had also sought a revised tax calculation based on reduced floor space index (FSI), which the BMC provided on January 31, 2025.
Advocate Prerak Choudhary, representing the contractors, said, 'Our case is that the BMC's property tax demands violate Section 184 of the Railways Act, 1989, as no tax is payable on casting yards used for the metro project. We challenged these demands before the Bombay high court, which granted interim relief against coercive recovery. Despite this, the contractors' payments were withheld at the BMC's request, though they are now being released. While the immediate issue is resolved, we await the court's decision on the broader legality of the tax demands.'
The final verdict in the case is still awaited.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
2 hours ago
- Time of India
Plan to allot houses on priority to urban poor lodged in transit houses
1 2 3 Bhubaneswar: To ensure timely allotment of units to urban poor in affordable housing projects, the Bhubaneswar Development Authority (BDA) and Bhubaneswar Municipal Corporation (BMC) have decided to collaborate with a focus on people staying in different transit houses in the city. A high-level meeting of the housing and urban development department was convened recently, where the decision was taken to ensure allotment of houses on a priority basis for beneficiaries staying in transit houses. BMC personnel shifted several people to the transit houses while BDA constructed affordable housing for them. Following the meeting, the department issued a notification mentioning the steps to be taken by the BMC and BDA to shift the beneficiaries to pucca houses, beginning with the transit house at Niladri Vihar, where 639 families are staying. BMC has been asked to shift these families to the affordable housing project in Chandrasekharpur. "A detailed enumeration is to be conducted by the joint enumeration team to be constituted from both the BMC and BDA to ascertain the exact number of families residing in the transit houses. The eligibility of the family for allotment of the dwelling units is to be ascertained as per the revised eligibility criteria of BMC," the notification read. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like One of the Most Successful Investors of All Time, Warren Buffett, Recommends: 5 Books for Turning... Blinkist: Warren Buffett's Reading List Click Here Undo The department has also asked both civic agencies to facilitate bank loans for the the beneficiaries. "Some families who have deposited part of the beneficiary contribution and are unable to pay the balance amount will be facilitated to avail bank loans. Based on the eligibility for allotment of dwelling units, a demand notice will be issued in their favour," the notification added. Officials also discussed the construction of the second phase of Shantipalli housing project at Satya Nagar. BDA has been asked to take immediate steps for the eviction of encroachments for the construction of the second phase of the project. The first phase of the project has been completed and houses were handed over to the beneficiaries, sources said.
Time of India
a day ago
- Time of India
Lake levels rise 12% in 24hrs, easing water cut fears
Mumbai: The water stock in the seven lakes that supply to the city saw the steepest single-day increase this monsoon between June 19 and 20, surging from 1.9 lakh million litres (13.19% of total capacity) to 3.64 lakh million litres (25.17%). Earlier this week, on June 17 (Tuesday), the lake stock had dipped below 10%, reaching a worrying 9.78%, prompting the BMC to tap into its reserve stock, which the civic body has stopped following heavy rainfall in the lake catchment areas across Thane, Palghar and Nashik. The seven lakes are: Tansa, Bhatsa, Modak Sagar, Tulsi, Vihar, Upper Vaitarna, and Middle Vaitarna. Officials from the hydraulic department attributed the 12% jump in lake stock to intense rainfall in their catchment areas. The rise has eased fears of immediate water cuts. The civic body usually imposes water cuts in the 5-10% range in June of there is inadequate rainfall. Last year, for instance, a 10% water cut was imposed in the city from June 5 to July 29 after lake levels had dipped. Civic hydraulic department chief engineer Purshottam Malawade said that water cuts had anyway been ruled out as the BMC dipped into reserves, which would have sustained the city's needs until July. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Memperdagangkan CFD Emas dengan salah satu spread terendah? IC Markets Mendaftar Undo "But now we have stopped taking water from reserves as they belong to the irrigation department and the BMC has to pay for use," he said. Mumbai has a daily water requirement of 4,200 MLD (million litres per day). Meanwhile, Ransai Dam has begun overflowing, bringing relief to Uran township. The MIDC-run dam, which provides 35 million litres of water a day to Uran, ONGC, defence facilities, JNPT, Nhava Sheva, and 22 grampanchayats in Uran taluka, has resumed regular distribution. The facility implemented twice-weekly water restrictions since December due to reduced levels but has now achieved its complete storage capacity of 10 million cubic metres following substantial rainfall. Earlier this week, Powai lake, which supplies 10 MLD of water for industrial purposes, overflowed. Concerns over the lake have been consistent as 16-18 MLD of sewage enters it. BMC said it has a plan that includes diverting sewage lines, setting up a sewage treatment plant, and intensifying the removal of water hyacinth to restore the ecological health of the lake. (Inputs from BB Nayak)
Time of India
a day ago
- Time of India
Forest dept, BMC visit SRK's home over complaints of CRZ violations
1 2 Mumbai: A joint team of forest department and BMC officials inspected actor Shah Rukh Khan 's bungalow, Mannat, at Bandra Bandstand, Friday following a complaint of coastal regulation zone violations during renovation of the property, reports Sanjeev Devasia. The property comprises Mannat, a heritage structure, and an annex structure, a multi-storey building. As Khan and his family have shifted to a nearby place due to the renovation, the officials were met by his staff who told them they would submit all documents concerning the permissions obtained. When contacted, Pooja Dadlani, Khan's manager, said "There are no complaints. All work is going on as per guidelines." The property is undergoing renovation and clearances were earlier sought from the Maharashtra Coastal Zone Management Authority (MCZMA) for it. The renovation included adding two additional floors to the annexe structure. A forest department official said, "A team did carry out a site inspection as we received a complaint about renovation permissions. A report will be prepared based on the findings and submitted soon." by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo An official, who was part of the team, said the staff present at the site told them that they would submit all documents concerning the permissions obtained. The BMC's H-West ward building and factory department and the building proposal department officials were asked to accompany the forest team for carrying out the inspection. "Our officials were accompanying the team, based on a request by the forest department. We had no other role," said a BMC official. Activist Santosh Daundkar had earlier lodged a complaint with the BMC regarding the construction at Mannat. Former IPS officer and lawyer Y P Singh on Friday alleged the layout of 'Mannat' comprised one main heritage building called Villa Vienna as per the heritage regulations. "The name of this building was changed to Mannat later. In 2005, an extension building of seven floors was made behind the heritage bungalow and since at that time Urban Land Ceiling Act was in force, a large apartment could not have been made. To overcome this legal hurdle, approval for 12 small independent flats was taken from the BMC by the owners namely Shah Rukh Khan and Gauri Khan. However, once the approval was obtained all these 12 small flats, which were essentially meant for mass housing under the Urban Land Ceiling Act, were merged and a super luxury accommodation of a single family was constructed," said Singh. "Without the help and connivance of the municipal officers this would never have happened. Even though the Urban Land Ceiling Act is no longer in force, actions taken during the time when the Act was in force have been saved. Therefore, it is legally compulsory for the owners of Mannat to restore those 12 independent small flats immediately so that the objective of mass housing could be accomplished and the eminent principles of rule of law are upheld," he added. Pics: Sanjay Hadkar
