Mumbai: The BMC has written to the Mumbai Metropolitan Region Development Authority (MMRDA) over the pending property tax of its contractor J Infraprojects Limited to the tune of Rs 550 crore.
As per the letter sent by the BMC joint municipal commissioner of the Assessment and collection department last month, it has been pointed out that despite multiple follow-ups, J Kumar Infraprojects has cited a clause in its agreement stating that MMRDA is responsible for property tax payment.
J Kumar Infraprojects Ltd has been allotted seven plots for setting up casting yards and Ready Mix Concrete (RMC) plants, across H/East, H/West, K/East, P/North, and M/West wards of the BMC by MMRDA for the ongoing metro construction works. The letter, a copy of which is with the TOI, states, “As per tender clause 2.7, for land allotted by MMRDA for casting yard, property tax payable to the local body shall be borne by MMRDA and all other taxes shall be borne by the contractor. However, during property assessment, the tax liability was assigned to J Kumar Infraproject Ltd under condition number 5 of the lease agreement, claims BMC. Consequently, the assessment was carried out in the company’s name, making it responsible for the tax payment.”
J Kumar Infraprojects is actively involved in implementing metro construction works for the MMRDA like the Mumbai Metro Line 2B (D N Nagar to Mandale). Officials said that during follow-ups with the contractor regarding the dues, the contractor claimed that the liability rests with MMRDA. “It must be clarified whether the outstanding property tax liability falls on MMRDA or the contractor. The amount should be paid accordingly,” the letter states. Samajwadi Party MLA Rais Shaikh said that he has already written to the civic commissioner, demanding action against major property tax defaulters. “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, many major defaulters like J Kumar Infraprojects have not cleared arrears for years. There is a need for strict action against those who can afford to pay but fail to do so,” said Shaikh.
When contacted an MMRDA official said, “The vacant land of the authority has been temporarily allocated to M/s J Kumar Infraprojects Limited for the metro project work. According to the terms and conditions of the authority’s land distribution, the responsibility for paying property tax lies with the contractor. “
Mumbai: The BMC has written to the Mumbai Metropolitan Region Development Authority (MMRDA) over the pending property tax of its contractor J Infraprojects Limited to the tune of Rs 550 crore.
As per the letter sent by the BMC joint municipal commissioner of the Assessment and collection department last month, it has been pointed out that despite multiple follow-ups, J Kumar Infraprojects has cited a clause in its agreement stating that MMRDA is responsible for property tax payment.
J Kumar Infraprojects Ltd has been allotted seven plots for setting up casting yards and Ready Mix Concrete (RMC) plants, across H/East, H/West, K/East, P/North, and M/West wards of the BMC by MMRDA for the ongoing metro construction works. The letter, a copy of which is with the TOI, states, “As per tender clause 2.7, for land allotted by MMRDA for casting yard, property tax payable to the local body shall be borne by MMRDA and all other taxes shall be borne by the contractor. However, during property assessment, the tax liability was assigned to J Kumar Infraproject Ltd under condition number 5 of the lease agreement, claims BMC. Consequently, the assessment was carried out in the company’s name, making it responsible for the tax payment.”
J Kumar Infraprojects is actively involved in implementing metro construction works for the MMRDA like the Mumbai Metro Line 2B (D N Nagar to Mandale). Officials said that during follow-ups with the contractor regarding the dues, the contractor claimed that the liability rests with MMRDA. “It must be clarified whether the outstanding property tax liability falls on MMRDA or the contractor. The amount should be paid accordingly,” the letter states. Samajwadi Party MLA Rais Shaikh said that he has already written to the civic commissioner, demanding action against major property tax defaulters. “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, many major defaulters like J Kumar Infraprojects have not cleared arrears for years. There is a need for strict action against those who can afford to pay but fail to do so,” said Shaikh.
When contacted an MMRDA official said, “The vacant land of the authority has been temporarily allocated to M/s J Kumar Infraprojects Limited for the metro project work. According to the terms and conditions of the authority’s land distribution, the responsibility for paying property tax lies with the contractor. “