Image Source: NESCO
On July 25, 2025, Nesco Limited was served with formal notices from the BMC’s Assessment and Collection Department. These have been issued under Sections 162(2) and 216(B) of the Mumbai Municipal Corporation Act, 1888—sections that pertain to property tax assessments and related compliances. The communication centers on the company’s properties in Goregaon (East), Mumbai, and calls for payment of assessment tax along with an associated penalty amounting to Rs 2,58,99,183.
Key Developments and Company’s Response
Nesco Limited delayed the regulatory dissemination of this information due to initial uncertainty about the precise quantum of the fee and penalty, as well as the need for confirmation of facts from BMC authorities. This clarity was finally received on August 6, 2025, when BMC communicated that the amount should be treated as a penalty pending further guidance.
Key highlights of the situation:
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Entity involved: Nesco Limited, Mumbai-based infrastructure and exhibition giant
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Authority issuing the notice: Brihanmumbai Municipal Corporation (Assessment and Collection Department)
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Date notice was received: July 25, 2025
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Content of the communication: Payment of assessment tax plus penalty (Rs 2.58 crore)
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Properties involved: Goregaon (East), Mumbai – 400063
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Period covered by claim: Financial years 2015-16 through 2025-26
Material Content and Underlying Causes
The core issue relates to delay in payment of property assessment taxes for previous years. According to BMC, this delay arose from retrospective alterations in the assessed area, changes in capital valuation, and modifications in the use of the property’s area. These factors, BMC claims, led to a revised—and significantly increased—tax liability, culminating in a penalty now being demanded from Nesco.
Financial Effect and Company Position
Despite the large penalty figure, Nesco Limited has publicly stated that the notice and its demand will not materially affect the company’s finances, operations, or other activities. The reasoning, as per their correspondence, is rooted in operational stability, the ongoing contestation of the demand, and the anticipation of further clarity from municipal authorities.
Action Steps Initiated by Nesco
Nesco has categorically denied liability for the penalty in its initial response and formally contested the demand, requesting comprehensive details and clarifications from BMC.
The company’s position, as of August 6, 2025, is that the demand is factually and legally incorrect, and that it will refrain from payment until the ambiguities are addressed.
Highlights of Regulatory Compliance
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Nesco disclosed the delay in dissemination of the notice to the stock exchanges, citing lack of clarity as the reason for the timing.
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The news was made public under Regulation 30 of SEBI’s LODR obligations.
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The company affirmed there is currently no material aberration or non-compliance in other regulatory matters.
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No further penalties, operational restrictions, or sanctions have been imposed beyond the communicated figure.
Takeaways for Investors and Stakeholders
Nesco Limited remains proactive in regulatory disclosures, promptly informing the public upon clarification from authorities.
The matter is being examined at the highest levels within the company, ensuring robust response and transparent engagement with BMC.
Stakeholders may take comfort in Nesco’s strong financial position, with the company emphasizing minimal material impact from the current situation.
Source: Company Disclosure to the Stock Exchanges
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