Bombay HC Seeks BMC Reply On J Kumar JV's Plea Challenging ₹23.71 Crore Property Tax Demand For Metro Project Land

Mumbai: The Bombay High Court has sought a response from the Brihanmumbai Municipal Corporation (BMC) to a petition filed by J Kumar CRTG-JV challenging a property tax demand of Rs 23.71 crore and the civic body’s subsequent recovery proceedings.

High Court Issues Notice

A bench of Chief Justice M C Tripathi and Justice Advait Sethna issued notice to the respondents on October 8, observing that the issues raised in the petition “require consideration”. The matter is listed for further hearing on October 15.

The petition challenges a demand notice dated June 13, 2025, seeking recovery of Rs 23,71,93,493 towards property tax for the period between April 1, 2016, and March 31, 2026. The joint venture has also challenged an order dated March 18, 2025, passed by the civic administration and a warrant of attachment issued on August 12, 2025.

Petitioner Questions Legal Validity

The petitioner has contended that the demand notices, the attachment proceedings and the impugned order are contrary to the provisions of the Mumbai Municipal Corporation Act, 1888, and violate its fundamental and constitutional rights. It has sought to have the impugned actions quashed.

The dispute relates to land allotted for infrastructure projects associated with Mumbai Metro. According to the petition, the land was allotted to the Mumbai Metropolitan Region Development Authority (MMRDA), which subsequently allotted it to the joint venture for project-related work.

Land Allotment Details Cited

The petition states that the subject property was allotted to the MMRDA on May 25, 2016, and subsequently to the petitioner on June 7, 2016. The joint venture has referred to contractual documents relating to three Metro project tenders and correspondence exchanged with the civic body over the tax liability. It has also challenged the assessment and recovery action through representations submitted to the authorities.

The petitioner has argued that the property tax liability was disputed from the outset. It has relied on a communication issued by the MMRDA in July 2017, stating that property tax should not be applicable to land parcels used for various infrastructure projects.

The joint venture has also stated that it vacated the subject property on March 1, 2022, and communicated this to the authorities. Despite its objections and subsequent representations, the BMC continued to raise demands and initiate recovery proceedings, prompting the present petition.

The proceedings have seen a series of notices and correspondence between the petitioner, the BMC and the MMRDA over several years. The petitioner has questioned the legality of the civic body’s assessment and its authority to recover the disputed amount.

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