The Indian Hotels Company Ltd (IHCL), parent of the Taj brand, has received penalty claims from municipal authorities over alleged delays and discrepancies in property tax payments for the financial year 2025–26. The claims come as local bodies intensify enforcement under revised property tax norms.
Penalty Details and Scope
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The penalties are linked to multiple IHCLowned and leased properties across metro cities, including Mumbai, Bengaluru, and Delhi.
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Authorities have cited delayed payments and underreported property usage as grounds for the claims.
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In Bengaluru, the BBMP has imposed a 100 percent penalty on chronic defaulters, along with 15 percent annual interest on unpaid dues.
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Mumbai’s BMC enforces a 1 percent monthly penalty on overdue property tax, which may apply to IHCL’s flagged assets.
Company Response and Next Steps
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IHCL is currently reviewing the claims and has initiated internal audits to verify the accuracy of municipal assessments.
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The company may contest certain penalties, citing procedural delays and discrepancies in valuation methods.
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Discussions with civic bodies are underway to resolve the matter without litigation.
Industry Context
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Property tax enforcement has tightened across India in 2025, with digital tracking and stricter penalty structures.
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Over 1.8 lakh properties in Bengaluru alone face outstanding dues, prompting aggressive recovery drives.
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Experts warn that hospitality firms with large real estate footprints are particularly vulnerable to compliance lapses.
Sources: Bangalore Mirror, Times of India, Dwello, Urvik Consulting.