MUMBAI : The Mumbai Port Authority (MbPA), which owns and operates the 154 year-old Mumbai Port, has listed the Indian Hotels Company Ltd (IHCL) as a “top defaulter” in what it considers adequate rent for land leased by the Tata group firm.
MbPA said in a release that it has engaged law officials and top-tier law firms to recover rental arrears and register criminal cases against them.
“It is unacceptable that commercial entities are exploiting prime port land to generate enormous corporate profits while willfully defaulting on their lease rental obligations,” according to MbPA official.
The iconic Taj Mahal Palace and Tower in Colaba, IHCL’s flagship property under its Taj brand, is built on land leased from MbPA by Tata group founder JN Tata, with the original lease expiring in 2001.
IHCL and MbPA have been locked in negotiations over renewals and rent revisions since then, with MbPA even serving an eviction notice to IHCL in 2012, alleging breaches in approved land use and outstanding rental arrears. The company has continued to occupy and operate the property over the period of dispute.
The Bombay High Court in October 2018 ordered an interim formula for the payment of rent, till the time the dispute over retrospective rents, lease breaches, and other matters between the parties is settled.
“We have been paying rent in accordance with the Bombay High Court order of October 2018, the demands are disputed and the issue is sub-judice,” according to a hotel spokesperson. According to MbPA, occupiers on the authority’s land must pay rent according to the Ready Reckoner, with periodic escalations. MbPA also demanded that the revised rent be applicable retrospectively from 2006-07.
A report from CareEdge Ratings showed that MbPA’s total claims against IHCL had reached Rs 1,874 crore as of March 2025, representing a potentially significant impact on the company’s balance sheet.
IHCL disputed the amount, terming MbPA’s demands to be “excessive” and in violation of the original lease terms. It also contested the disputed amount, saying that according to MbPA’s own calculations, the liabilities should not be more than Rs 163 crore, an amount that the company is also disputing on legal grounds.
Moneycontrol has written to IHCL for comment on the new development, and the story will be updated once a response is received.
The move by MbPA comes amid its significant plans to revive the importance of the port and revitalising the eastern seaboard of Mumbai through generating revenue from prime land parcels that it owns at or near the “old” port. The plans include new terminals, wharves, jetties, marinas, offices, and MICE and entertainment venues.
In a release, MbPA listed eight “defaulters” who owe the authority around Rs 3,500 crore in rent. Besides IHCL, other firms include individual lessees, as well as shipping and trading firms.
Source : Moneycontrol
