MMRCL Withholds Payments to Metro Line 3 Contractors Over ₹152 Crore Tax Dispute

Contractors challenge BMC's property tax demand in court, citing exemptions under the Railways Act, as MMRCL pressures them to settle dues.

The Mumbai Metro Rail Corporation Ltd (MMRCL) has issued notices to two contractors, withholding payments over ₹152.05 crore in unpaid property taxes claimed by the Brihanmumbai Municipal Corporation (BMC).
The BMC billed HCC-MMS JV ₹53.17 crore and CEC-ITD JV ₹98.88 crore for using a civic-owned plot at Wadala Truck Terminal as a casting yard for the Metro Line 3 project.
Contractors secured interim relief from the Bombay High Court in April 2024, preventing coercive recovery; the stay remains in effect as the legal dispute is unresolved.
Advocate Prerak Choudhary argues the tax demand violates Section 184 of the Railways Act, 1989, which exempts railway-related land from property taxes.
Critics claim MMRCL's and BMC's actions to withhold payments breach court orders, urging restraint until a final judicial decision is made.