BMC writes to MMRDA about Rs 550cr property tax dues of contractor | Mumbai News

Mumbai: The BMC last month wrote to the Mumbai Metropolitan Region Development Authority (MMRDA) regarding the pending property tax of its contractor, J. Infraprojects Limited, amounting to Rs 550 crore.
According to the letter sent by the BMC joint municipal commissioner of the assessment and collection department, it was pointed out that despite multiple follow-ups, J Kumar Infraprojects cited a clause in its agreement stating that MMRDA is responsible for property tax payment.
J Kumar Infraprojects Ltd. was allotted seven plots for setting up casting yards and ready mix concrete (RMC) plants across H/East, H/West, K/East, P/North, and M/West wards of the BMC by MMRDA for the ongoing metro construction works. The letter, a copy of which is with the TOI, states, “As per tender clause 2.7, for land allotted by MMRDA for casting yard, property tax payable to the local body shall be borne by MMRDA, and all other taxes shall be borne by the contractor. However, during property assessment, the tax liability was assigned to J Kumar Infraprojects Ltd under Condition Number. 5 of the lease agreement. Consequently, the assessment was carried out in the company’s name, making it responsible for the tax payment.”
J Kumar Infraprojects is actively involved in implementing metro construction works for the MMRDA, such as the Mumbai Metro Line 2B (D N Nagar to Mandale). Officials said that during follow-ups with the contractor regarding the dues, the contractor claimed that the liability rests with MMRDA. “It must be clarified whether the outstanding property tax liability falls on MMRDA or the contractor. The amount should be paid accordingly,” the letter states.
Samajwadi Party MLA Rais Shaikh said that he has already written to the civic commissioner, demanding action against major property tax defaulters. “The BMC’s property tax target for this financial year is ₹6,200 crore, with payments due by December. Despite a 2% penalty for late payments, many major defaulters like J Kumar have not cleared arrears for years. There is a need for strict action against those who can afford to pay but fail to do so,” said Shaikh.
TOI reached out to MMRDA for comment, but no response was received till the time of going to press.