Metro Contractors Threaten BMC With Contempt of Court

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.

- Linah Baliga

MUMBAI:

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 ₹53.17 crore 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).