Mumbai: BMC Issues Rs 27.12 Crore Notice to Taj Mahal Palace Hotel Over Road and Footpath Usage
Mumbai, 17th July 2026: The Brihanmumbai Municipal Corporation (BMC) has issued a demand notice of ₹27.12 crore to the iconic Taj Mahal Palace Hotel in Colaba for the use of public roads and footpaths for security infrastructure and parking.
According to the notice issued by the Assistant Commissioner of BMC’s ‘A’ Ward, the civic body has demanded ₹4.97 crore towards road usage charges and ₹22.15 crore for footpath usage, including interest and other applicable charges up to March 2026.
The dispute dates back to the period following the 26/11 Mumbai terror attacks, when approximately 869.59 square metres of road and 1,136.3 square metres of footpath around the hotel were occupied for enhanced security arrangements, including barricades, security planters, and parking.
Earlier, the Taj Mahal Palace Hotel had sought a 50 per cent concession on road usage charges and a complete waiver of footpath usage fees, arguing that the occupied footpaths were not being used for commercial purposes. The proposal received approval from the then BMC Standing Committee in January 2021 but remained pending before the General Body.
Following a review of similar cases, particularly after recovering pending dues from the Bombay Stock Exchange (BSE), the BMC reassessed concessions granted to commercial establishments. On 21 February 2025, the Municipal Commissioner approved the withdrawal of the earlier concessions granted to both the Taj Mahal Palace Hotel and the Trident Hotel.
Subsequently, revised demand notices were issued. The BMC stated that while the Trident Hotel has cleared its outstanding dues and removed security planters from the footpath, the Bombay Stock Exchange has also agreed to pay ₹3.25 crore in pending road usage charges for the period between April 2012 and December 2024.
However, civic officials said that despite repeated reminders, the Taj Mahal Palace Hotel has not paid the revised charges. According to the latest demand, the hotel was earlier asked to pay ₹4.03 crore for road usage and ₹18.27 crore for footpath usage up to July 2025. With interest and additional charges, the dues increased to ₹4.73 crore for road usage and ₹21.32 crore for footpath usage by September 2025. An additional ₹1.08 crore has also been levied for usage charges between October 2025 and March 2026.
A senior BMC official said the civic body has adopted a uniform policy for commercial establishments occupying public roads and footpaths for security purposes. Since other institutions, including the BSE and Trident Hotel, have complied with the payment requirements, the BMC found no justification for continuing concessions to the Taj Mahal Palace Hotel.
The Taj Mahal Palace Hotel had not issued any official response to the notice at the time of publication.
