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MMRCL Withholds Payments to Metro Line 3 Contractors Over ₹152 Crore Tax Dispute

Contractors challenge BMC's property tax demand in court, citing exemptions under the Railways Act, as MMRCL pressures them to settle dues.

Mumbai, India. April 01,2024 : The Brihanmumbai Municipal Corporation (BMC) sent property notices to Dogus Soma JV, HCC MMS JV and Continental ITD Cementation Tata Project JV Compony`s casting yard. April 01,2024. (Photo by Raju Shinde/HT Photo)

Overview

  • The Mumbai Metro Rail Corporation Ltd (MMRCL) has issued notices to two contractors, withholding payments over ₹152.05 crore in unpaid property taxes claimed by the Brihanmumbai Municipal Corporation (BMC).
  • The BMC billed HCC-MMS JV ₹53.17 crore and CEC-ITD JV ₹98.88 crore for using a civic-owned plot at Wadala Truck Terminal as a casting yard for the Metro Line 3 project.
  • Contractors secured interim relief from the Bombay High Court in April 2024, preventing coercive recovery; the stay remains in effect as the legal dispute is unresolved.
  • Advocate Prerak Choudhary argues the tax demand violates Section 184 of the Railways Act, 1989, which exempts railway-related land from property taxes.
  • Critics claim MMRCL's and BMC's actions to withhold payments breach court orders, urging restraint until a final judicial decision is made.