Mumbai, April 11: The Bombay High Court has directed Sahara Hospitality Limited to deposit Rs 23.89 crore within four weeks and ordered restoration of water supply to its hotel premises upon filing an undertaking, in its dispute with the Brihanmumbai Municipal Corporation over property tax demands.
Interim relief and stay on notices
A bench of Chief Justice Shree Chandrashekar and Justice Aarti Sathe, on April 8, granted interim relief to the company, which operates the Sahara Star hotel in Vile Parle (East), and stayed five demand notices issued by the BMC seeking recovery of property tax.
The company had challenged the BMC’s notices, terming the demands a “retrospective reassessment”.
BMC cites illegal constructions
BMC’s advocate opposed the grant of interim relief, arguing that the tax demands were raised following an inspection of the properties. “It was detected that certain illegal constructions were raised and, therefore, notices were issued,” the civic body submitted. It further contended that a Special Notice had also been served, which the company failed to respond to.
Company alleges arbitrary action
Counsel for Sahara Hospitality argued that the civic body’s actions were arbitrary and violated the company’s right to carry on business. He submitted that the disconnection of water supply “shall amount to civil death of the petitioner-company”.
Sahara further pointed out that the impugned demands, in respect of three properties, were raised for the first time in 2026, with the BMC seeking to recover alleged arrears dating back to 2001 under the label of “provisional assessment”.
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Court directions and next hearing
The corporation stated that it would restore the water connection subject to the company depositing the amount of Rs 23,89,31,590.
The court took note of the company’s recent financial history, and observed that Sahara Hospitality had undergone liquidation and has only recently emerged from the Corporate Insolvency Resolution Process (CIRP).
Hence, it granted four weeks to Sahara Hospitality to deposit the amount with the High Court’s registry and directed the BMC to file its reply affidavit. The court has kept the matter for hearing after six weeks.
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