Mumbai: The Brihanmumbai Municipal Corporation (BMC) has written to the Mumbai Metropolitan Region Development Authority (MMRDA) over an outstanding property tax amounting to Rs 550 crore, owed by its contractor, J Kumar Infraprojects Limited.

Despite repeated follow-ups, J Kumar Infraprojects has cited a clause in its agreement that places the responsibility of property tax payment on MMRDA, as reported by Times of India. In a letter sent last month, the BMC's joint municipal commissioner from the Assessment and Collection Department highlighted this dispute, emphasizing the need for a resolution.

Key Projects Allotted To J Kumar Infraprojects Ltd In Mumbai

J Kumar Infraprojects Ltd has been allotted seven plots across various BMC wards—H/East, H/West, K/East, P/North, and M/West—for the establishment of casting yards and Ready Mix Concrete (RMC) plants, essential for ongoing metro construction. According to the BMC, clause 2.7 of the tender states that MMRDA must bear the property tax for land allocated as a casting yard, while the contractor is responsible for other taxes. However, the lease agreement's condition number 5 placed the tax liability on J Kumar Infraprojects, leading to the assessment being carried out in the contractor’s name.

The company is currently involved in major metro projects, including Mumbai Metro Line 2B (D N Nagar to Mandale). During multiple follow-ups, J Kumar Infraprojects maintained that MMRDA is liable for the payment, prompting BMC to demand clarity on the issue. The civic body’s letter states that the dues must be settled by the responsible party without further delay.

SP MLA Rais Shaikh Urges Action Against Major Tax Defaulters

Samajwadi Party MLA Rais Shaikh has urged the BMC to take strict action against major property tax defaulters, including J Kumar Infraprojects. "The BMC’s property tax target for this financial year is Rs 6,200 crore, with payments due by December. Despite a 2% penalty for late payments, several large defaulters have yet to clear their dues. Action must be taken against those who can afford to pay but continue to evade taxes," Shaikh stated.

Meanwhile, an MMRDA official clarified that the vacant land allotted to J Kumar Infraprojects for metro work is temporarily allocated, and as per the authority’s terms, the contractor is responsible for paying the property tax.