Mumbai Metro Rail Contractors Face Final Notice for Unpaid Property Tax Worth Rs 326 Crore

Mumbai: Five contractors dealing with the Mumbai Metro rail have defaulted on property tax worth Rs 326 crore. The civic administration has issued a final notice asking it to pay taxes within the next seven days or face action. Earlier, the contractors were issued notices in March asking them to pay taxes within 21 days. The contractors are yet to pay their taxes.

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Mumbai Metro Rail Corporation Limited (MMRCL) is working on the metro rail project. For this, MMRCL has provided plots for casting yards at Wadala Truck Base, Plot No. 8 Phase 2 and 3 to the contractor companies M/s CEC-ITD, M/s L&T Stake JV, M/s Dogus Soma, M/s HCC-1, M/s HCC-MMS-II for metro work.

1) Property tax of Rs 326 crore 22 lakh 69 thousand 846 is pending with all the five contractors. Despite repeated instructions from the municipal taxation and collection department, four of these contractors have not paid their taxes since the financial year 2016-17 till date.

2) HCC-MMC, a contractor, has been pending property tax since the financial year 2010-11. As per the agreement between MMRCL and the contractors concerned, it is the responsibility of the contractors concerned to pay the taxes related to the use of this plot. 

If taxes aren't paid in seven days...

On March 16, the civic administration issued notices to the contractors concerned to pay tax within 21 days under Section 203 of the Mumbai Municipal Corporation Act, 1888. The civic body has issued a seven-day final notice for non-payment of taxes even though the 21-day due period expired on April 15. Failure to pay taxes during these seven days will result in confiscation of property, it said.