Mumbai: The BMC has issued a final notice to Mumbai Metro rail contractors over the pending property tax of Rs326 crore. The contractors working on several ongoing metro works are liable to pay tax on the casting yard in Wadala. The five contractors will have to pay the dues within a week or face action, which may include confiscation of property, the BMC has warned.

On March 19, the BMC sent a 21-day notice to metro contractors, demanding the property tax dues. “As per the agreement between Mumbai Metro Rail Corporation Ltd (MMRCL) and the contractors, the latter are responsible for paying property tax on the casting yard. The tax payment has been delayed even after several reminders,” said a civic official.

The notice has been issued to companies M/s HCC-MMC, M/s CEC-ITD, M/s Doga Soma and M/s L&T (Larsen & Toubro). The property tax bills were delayed until 2023-24. The BMC, therefore, extended the last date for payment of property tax to May 25.

Property tax is the second-highest revenue source of income for the BMC. The civic body has focused on big defaulters to recover the deficit in the financial year 2023-24.