The authority has decided to review its legal strategy, engage senior legal experts and top law firms, and intensify recovery efforts against commercial entities that have defaulted on lease obligations despite occupying prime port land. It also plans to file criminal cases against unauthorised occupants, alleging violations including illegal subletting, unauthorised construction, unapproved transfers and changes in land use.
The move comes as MbPA seeks to accelerate implementation of its master plan for the eastern waterfront under the Major Port Authorities Act, 2021. The plan envisages development of an integrated maritime economic hub comprising tourism infrastructure, cruise terminals, specialised water transport networks and government office complexes linked to port operations.
According to the authority, timely recovery of lease rentals is critical as the projects are proposed to be financed largely through the port’s own reserves. It said prolonged litigation and continued defaults by several commercial tenants have constrained its ability to channel funds towards these capital-intensive developments.
“It is unacceptable that commercial entities are generating substantial profits from prime public land while wilfully defaulting on lease rental obligations,” a Mumbai Port official said on condition of anonymity, adding that several lessees have continued to challenge eviction orders in higher courts while withholding legitimate payments.
MbPA has identified eight major defaulters whose combined outstanding dues are estimated at around Rs 3,500 crore. These include Indian Hotels Co. Ltd., Crescent Dyes & Chemicals Ltd., Omprakash Tulsiram Aggarwal and joint tenants, Timber Market Occupants’ Society, Provident Investment Co. Ltd., Indian Vegetable Product Ltd., Scindia Steam Navigation Co. Ltd. and Subh Hospitality Ltd.
The official added that while it respects the legal rights of tenants to pursue judicial remedies, it would no longer tolerate strategies that delay recovery of public money and impede infrastructure creation.
MbPA urged defaulting tenants to clear their dues and regularise their positions, stating that recovering the outstanding revenue is essential to revive redevelopment of Mumbai’s historic eastern waterfront and support the city’s long-term maritime growth strategy.