MMRDA Seeks Property Tax Waiver for Metro Construction Sites in Mumbai
The Mumbai Metropolitan Region Development Authority (MMRDA) has requested the State Urban Development Department to waive ₹550 crore in property tax for temporary casting yards and RMC plants used by Metro contractors.
MumbaiMmrdaProperty TaxMetro ConstructionBmcReal Estate MumbaiJun 26, 2025
J Kumar Infraprojects Ltd was allotted seven plots across key BMC wards—H/East (Santacruz), H/West (Bandra), K/East (Andheri), P/North (Malad), and M/West (Chembur)—by the MMRDA for setting up casting yards and RMC plants to facilitate ongoing Metro construction. According to civic sources, the company has declined to pay the property tax, citing a clause in its contract that places the responsibility on the MMRDA.
On December 9, 2024, the BMC’s Joint Municipal Commissioner (Assessment and Collection Department) formally wrote to the MMRDA, urging resolution of the matter and recovery of pending dues. Following the BMC’s letter, the MMRDA approached the Additional Chief Secretary of the UD Department in February 2025, requesting that the civic body be directed to waive the pending property tax.
In a letter to the BMC, Dr. Kiran Mahajan, Deputy Commissioner of MMRDA, stated that 'No coercive recovery action should be taken until the state government decides on the authority’s proposal.' A copy of this letter is with The Free Press Journal.
The BMC has identified several major property tax defaulters, including prominent real estate developers and government agencies. Outstanding dues accumulated since 2010 have now ballooned to Rs 22,000 crore, including penalties over the past 15 years. As part of its recovery drive, the civic body has begun issuing notices to large defaulters. An auction of 25 properties belonging to those who have failed to clear their dues is scheduled to be held soon.
Frequently Asked Questions
What is the total amount of property tax MMRDA is requesting to be waived?
The total amount of property tax MMRDA is requesting to be waived is ₹550 crore.
Which company was allotted the plots for setting up casting yards and RMC plants?
J Kumar Infraprojects Ltd was allotted the plots for setting up casting yards and RMC plants.
Why has J Kumar Infraprojects Ltd declined to pay the property tax?
J Kumar Infraprojects Ltd has declined to pay the property tax, citing a clause in its contract that places the responsibility on the MMRDA.
When did the BMC send a letter to MMRDA regarding the property tax dues?
The BMC sent a letter to MMRDA regarding the property tax dues on December 9, 2024.
What is the total amount of outstanding property tax dues accumulated by the BMC since 2010?
The total amount of outstanding property tax dues accumulated by the BMC since 2010 is Rs 22,000 crore, including penalties.
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