The Indian Hotels Company Limited (IHCL) has reported receiving an additional penalty claim of Rs. 4,29,02,720/- from the Brihanmumbai Municipal Corporation (BMC) regarding outstanding property taxes for the Taj Lands End property in Mumbai. This escalates the total cumulative penalty claim to Rs. 97,56,95,340/-. IHCL confirms that the tax payment liability is currently disputed based on Hon’ble Supreme Court/High Court Orders, and the company anticipates no adverse impact on its operations.
Update on Municipal Tax Penalty Claim
Pursuant to regulatory requirements, IHCL is disclosing details regarding a property tax matter concerning its property, Taj Lands End, Mumbai. On February 12, 2026, the company received a demand notice from the Brihanmumbai Municipal Corporation (BMC) containing an additional penalty claim.
Key Financial Details of the Claim
The newly claimed penalty amounts to Rs. 4,29,02,720/-, which is levied on previously outstanding property taxes. This new addition increases the total quantum of the penalty claim being asserted by the BMC against the outstanding property taxes. The total penalty now stands revised at a significant figure of Rs. 97,56,95,340/-.
This disclosure builds upon a prior communication made to the exchanges in August 4, 2025, regarding an earlier penalty demand.
Company Position and Impact Assessment
IHCL has formally stated that the claim for this penalty is disputed by the Company on merit. The basis for this dispute relates to the payment of property taxes, which the company asserts has been managed in accordance with prevailing Hon’ble Supreme Court / Hon’ble High Court’s Orders.
In terms of business consequences, IHCL has confirmed that while the financial impact is quantified to the extent disclosed in the penalty figures, there will be no impact on the operations or other activities of the Company.
Source: BSE
