Mumbai Port Authority Cracks Down On Lease Defaulters; Taj Hotels Among Top Entities Owing ₹3,500 Crore
· Free Press Journal
Mumbai, July 20, 2026: The Mumbai Port Authority (MbPA) has launched an aggressive recovery drive against chronic lease defaulters and unauthorised occupants on its land, naming several high-profile lessees — including The Indian Hotels Company Ltd. (Taj Hotels) — among entities with estimated combined lease rental arrears of around Rs 3,500 crore.
The move comes as the Port Authority seeks to unlock funds for major infrastructure projects planned under the Centre's Maritime Amrit Kaal Vision 2047 and Maritime India Vision, including the proposed Mumbai Marina, cruise tourism facilities, shipbuilding infrastructure and water transport projects along the Eastern Waterfront.
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Legal Action Against Defaulters
In a statement issued on Sunday, MbPA said it has decided to review and strengthen its legal strategy to recover outstanding dues. The authority has engaged senior law officers and leading law firms to pursue recovery proceedings and has also decided to initiate criminal cases against unauthorised occupants of port land.
According to MbPA, chronic non-payment of lease rentals has adversely affected its ability to finance large-scale port-centric infrastructure projects envisioned under the Major Port Authorities (MPA) Act, 2021.
"It is unacceptable that commercial entities are exploiting prime port land to generate enormous corporate profits while wilfully defaulting on their lease rental obligations," a Mumbai Port official said in a release.
The official further alleged that several lessees had committed operational violations, including unauthorised construction, illegal subletting, unapproved transfer or assignment of leasehold rights, and unauthorised changes in land use.
"These violations not only compromise port security and endanger public life and safety, but they also foster unlawful commercial activities. Instead of clearing their dues, these lessees have chosen to engage in prolonged litigation, thereby stalling critical economic projects meant to elevate Mumbai's status in the global maritime ecosystem. In several cases, Mumbai Port has secured eviction orders, but the lessees have approached higher courts, effectively prolonging the legal process while continuing to withhold legitimate payments due to the Port Authority," the official added.
Top Defaulters Identified
To increase public accountability, MbPA has identified its top lease rental defaulters, whose estimated combined liabilities stand at approximately Rs 3,500 crore. These include The Indian Hotels Company Ltd. (Taj Hotels), Crescent Dyes & Chemicals Ltd., Shri Omprakash Tulsiram Aggarwal and six others (joint tenants), The Timber Market Occupants Society, Provident Investment Co. Ltd., Indian Vegetable Product Ltd., Scindia Steam Navigation Co. Ltd. and Subh Hospitality Ltd.
The Port Authority said it respects the legal rights of tenants but cannot allow prolonged disputes to delay projects of public importance.
"The Authority will no longer tolerate the delaying strategies used by commercial tenants. The Port Authority urges all defaulting tenants to come forward, clear their outstanding arrears, and cease draining public resources, thus allowing Mumbai's historical eastern coast to finally be returned to its citizens," MbPA said.
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The recovery drive is part of the authority's broader plan to redevelop Mumbai's Eastern Waterfront into a maritime economic hub featuring international cruise terminals, modern water transport infrastructure, commercial facilities and government offices dedicated to port operations.
According to MbPA, timely recovery of lease rentals is essential to fund these capital-intensive projects and accelerate Mumbai's transformation into a global maritime destination.
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