Metro contractors must pay ₹152.05 crore in taxes

The Mumbai Metro Rail Corporation Ltd (MMRCL) has warned two contractors working on Metro Line 3 that it will stop payments due to unpaid property taxes. The contractors owe a total of ₹152.05 crore to the Brihanmumbai Municipal Corporation (BMC). This includes ₹53.17 crore for HCC MMS (JV) and ₹98.88 crore for CEC-ITD. The tax applies to a plot at the Wadala Truck Terminal, used as a casting yard for the Metro project. Additional Municipal Commissioner Ashwini Joshi stated on March 27, 2024, that the contractors are responsible for this tax. The BMC sent the tax bill to the contractors in early April 2024. The contractors have challenged this in the Bombay High Court, which granted them a stay on payments. This stay has been extended multiple times. The case is still pending, and the court's next hearing date is not yet determined. Despite the court's decision, the BMC instructed MMRCL on January 31, 2025, to recover the tax dues. In response, MMRCL informed the contractors on March 13 that they will withhold payments due to non-payment of taxes. The contractors' advocate argues that the BMC's charges violate a law that exempts property used for railways from taxes. He emphasized that the contractors are protected by the court's decision and that both the BMC and MMRCL are acting unjustly. MMRCL has not provided any comments on the situation.