Bombay HC directs BMC not to take coercive step against MMOPL in property tax row
India Today
A Bench of Justices AA Sayed and MS Karnik directed BMC to not take any coercive action such as cutting off water and sewerage lines to the metro over alleged non-payment of property tax.
Granting an interim relief to Mumbai Metro One Private Limited (MMOPL), the Bombay high court has directed the Brihanmumbai Municipal Corporation (BMC) to not take any coercive steps regarding the Versova-Ghatkopar metro line.The coercive action would have entailed cutting the water supply and sewerage lines of Metro one route over the property tax not being paid.The division bench of Justices AA Sayed and MS Karnik was hearing MMOPL's plea against BMC's action of demanding nearly Rs 2500 crore tax. Advocate Venkatesh R Dhond, appearing for MMOPL, argued that the government has already granted an exemption for payment of property tax as stipulated under the Central Metro Act and the Railway Act. Despite that, the BMC was demanding the property tax from the petitioner company, which is Metro Railway Administrator of the Metro-1 line. This, he said, was "illegal, malaised, arbitrary and in brazen breach of provisions of law."The MMOPL's plea sought to quash warrants of attachment issued by the BMC earlier this month and a pending hearing of the plea seeking a stay on the same. It sought from the court the direction to the BMC to comply with the state government's directions of April 17, 2018, which provided for withdrawing all notices and ordered fixing the capital value of the petitioner's properties and demanding property tax or octroi from the petitioner.The MMOPL also sought to restrain BMC officials from raising any demands for municipal taxes or charges on the petitioner and taking action in that regard.
The company said that it had requested the BMC to withdraw the notices issued to them and implement the directives of the state government that exempted MMOPL from paying property tax and municipal taxes and such charges. However, as attachment warrants were issued against the company and the BMC did not provide an exemption, the petitioner had no option other than to approach the high court.However, BMC's counsel Ranjeet Thorat opposed the plea and said that some of the amount claimed by the authority must be paid first as property tax by MMOPL. He said that services are provided through a private entity, and there was no question of granting property tax exemption to the petitioner.The MMOPL, which is a private-public partnership firm, runs Mumbai's first metro rail line, which started in June 2014.
Seeking a response from the state and BMC, the bench posted a further hearing on MMOPL's plea after three weeks. The bench has also sought the assistance of Advocate General Ashutosh Kumbhakoni on the next date to assist it in the hearing.
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