MUMBAI NEWS: The Brihanmumbai Municipal Corporation (BMC) has issued a demand notice to the Taj Mahal Palace Hotel, asking it to pay Rs 27.12 crore towards road and footpath occupation charges for security
installations, barricades and parking spaces around the iconic Colaba property after withdrawing concessions that had previously been granted.
According to the notice issued by the Assistant Commissioner of A Ward, the civic body has sought Rs 4.97 crore as road occupation charges and Rs 22.15 crore as footpath occupation charges. The total demand, including interest and other charges calculated up to March 2026, amounts to Rs 27.12 crore.
Charges Linked To Post-26/11 Security Installations
According to a report in The Times of India, the dispute relates to the occupation of 869.59 square metres of road space and 1,136.3 square metres of footpath around the hotel. These areas have been used for security planters, barricades and parking arrangements introduced following the 26/11 Mumbai terror attacks.
The hotel had earlier sought a 50% concession on road occupation charges and a complete waiver of footpath occupation charges, arguing that the occupied footpath was being used solely for security purposes and not for any commercial activity.
The proposal was approved by the then BMC Standing Committee in January 2021, but it remained pending before the civic body’s general body.
Concessions Withdrawn After Policy Review
According to the BMC, the concessions were reviewed after the civic body recovered pending occupation charges from the Bombay Stock Exchange (BSE). The A Ward office subsequently carried out a review of similar concessions granted to commercial establishments.
On February 21, 2025, the Municipal Commissioner approved the withdrawal of the concessions previously extended to the Taj Mahal Palace Hotel. Following the decision, revised demand notices were issued to both the Taj Mahal Palace Hotel and the Trident Hotel.
BMC Says Other Establishments Cleared Dues
The civic body said the Trident Hotel paid all outstanding dues and removed the security planters occupying the footpath.
It also said the Bombay Stock Exchange agreed to pay Rs 3.25 crore towards pending road occupation charges for the period between April 2012 and December 2024.
However, BMC officials said the Taj Mahal Palace Hotel has not yet paid the revised charges despite repeated reminders.
Outstanding Amount Increased With Interest
According to the latest reminder issued by the civic body, the hotel had earlier been asked to pay Rs 4.03 crore towards road occupation charges and Rs 18.27 crore towards footpath occupation charges up to July 2025.
As the dues remained unpaid, interest was added, increasing the amount to Rs 4.73 crore for road occupation and Rs 21.32 crore for footpath occupation up to September 2025.
The BMC has also sought an additional Rs 1.08 crore towards occupation charges for the period between October 2025 and March 2026, taking the total demand to Rs 27.12 crore.
Uniform Policy For Commercial Establishments
A senior civic official said the BMC has adopted a uniform policy for commercial establishments occupying public roads and footpaths for security purposes.
The official said that since the Bombay Stock Exchange had agreed to pay the prescribed charges and the Trident Hotel had complied with the revised policy, there was no justification for continuing the concessions previously granted to the Taj Mahal Palace Hotel. The civic body has therefore initiated recovery of the revised dues.
When contacted, the Taj Mahal Palace Hotel did not comment on the matter.
