IHCL has recorded port authority’s claims as a contingent liability.
Mumbai Port Authority (MPA) seeks to recover over Rs 3500 crore in lease rent from lessees and tenants to help fund the overhaul of city’s eastern waterfront MPA has engaged top tier law firms and has revised its legal strategy as it renews it’s efforts to recover the dues.The port owns vast swathes of land and has several high profile tenants with whom it has rent related disputes.This includes Indian Hotel Company Limited’s (IHCL) Taj Mahal hotel in Colaba.According to a top MPA official, eight lease rent defaulters collectively owe the port around ₹3500 crore. IHCL has disputed the claim.“ We have finalised a visionary master plan to overhaul the eastern waterfront. These planned initiatives are designed as heavy economic drivers: an iconic maritime economic growth hub featuring world-class maritime tourism centers (such as the Mumbai Marina), specialised water transport networks, international cruise terminals, and essential central government office complexes dedicated to port operations,” the official said. He said the infrastructure projects require massive, capital-intensive investments. “Mumbai Port’s long-term financial strategy and vision rely heavily on channelling its own reserves directly into funding these mega-maritime projects. However, non-payment by chronic defaulters has choked this vital revenue pipeline, directly threatening Mumbai Port’s maritime development timeline,” the official said.Commercial entities“It is unacceptable that commercial entities are exploiting prime port land to generate enormous corporate profits while willfully defaulting on their lease rental obligations,” he said. In a statement IHCL said the company is paying rent in accordance with Bombay High Court Order of October 2018. The port authority’s demands are disputed and matter is subjudice, a company spokesperson said.In its latest annual report IHCL said the lessor (MPA) has been raising excessive claims from FY 2007. These aggregate to ₹ 2,095 crores for period between September 2006 to March 2026.IHCL has recorded port authority’s claims as a contingent liability. In its annual report IHCL said Bombay High Court has stayed MPA’s notices in FY 2019 and restrained it from taking coercive action pending disposal of its suit.Published on July 20, 2026
