Why Is BMC Seeking INR 22 Crore From Taj Mahal Palace Over 26/11 Security Barriers?

The BMC has issued a INR 22.03 crore demand notice to Taj Mahal Palace Hotel in Mumbai for occupation charges linked to security barricades, bollards and planters installed after the 26/11 attacks. The structures occupy public road and footpath space around the hotel. Taj management says the barriers are essential security measures and should not attract commercial fees.

Taj Mahal Palace Hotel Receives Bomb Threat Call (Photo Credits: ANI)

The Brihanmumbai Municipal Corporation (BMC) has issued a fresh demand notice to the Taj Mahal Palace Hotel in Colaba, asking the hotel management to pay INR 22.03 crore as occupation charges for the use of public roads and footpaths around the property. The charges relate to security barricades, bollards and planters installed after the 26/11 Mumbai terror attacks.

The civic body said the security structures currently occupy around 800 square metres of public road space and more than 1,100 square metres of public footpath area. The hotel management, however, has argued that the installations are required for public safety and should not be treated as commercial encroachments. Taj Mahal Palace Hotel Receives Bomb Threat Call; Mumbai Police Launch Search Operation (Watch Video).

BMC Seeks Payment for Security Structures

The security measures around the Taj Mahal Palace were introduced in June 2009 following the 2008 Mumbai terror attacks, during which the hotel was among the locations targeted by attackers.

According to civic records, the barricades and related structures have remained in place as part of security arrangements around the iconic hotel. The BMC has now sought payment for the occupation of public spaces used by these installations. Mumbai: Shalimar, Noor Mohammadi Hotel and Rehmania Restaurant Lose Licences in FDA Crackdown.

Previous Concessions Withdrawn by Civic Body

The demand follows the withdrawal of earlier concessions granted to the hotel. In December 2020, the BMC’s standing committee had approved a 50 per cent concession on road charges and a complete waiver on footpath fees, citing the security importance of the arrangements.

However, the BMC Administrator withdrew these benefits in May 2025. Officials said the decision was taken as part of a uniform policy after the Bombay Stock Exchange, which had faced a similar security-related levy, cleared its outstanding dues in full.

Taj Management Raises Security Concerns

Representatives of the Taj management are currently in discussions with senior civic officials regarding the demand. The hotel has maintained that the security barriers are not commercial extensions but essential safety measures implemented due to security concerns.

The management has argued that such installations should continue to receive exemption from commercial occupation charges because they serve a public safety purpose.

The latest demand notice issued by the BMC includes a warning that a 15 per cent monthly interest penalty will be imposed if the outstanding amount is not cleared. The civic body has asked the hotel management to settle the dues, while discussions between both sides continue over the applicability of the charges.

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(The above story first appeared on LatestLY on Jul 16, 2026 07:45 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).

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