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Bombay High Court Orders ₹23.89 Crore Deposit for Restoration of Water Supply to Sahara Star Hotel

Mumbai, April 8: The Bombay High Court has directed Sahara Hospitality Limited to deposit ₹23.89 crore within four weeks as a condition for restoring the water supply to its flagship property, the Sahara Star Hotel, following a dispute over property tax with the Brihanmumbai Municipal Corporation (BMC).
A division bench comprising Chief Justice Shree Chandrashekar and Justice Aarti Sathe also granted interim relief by staying five demand notices issued by the BMC, which the hotel has challenged as a retrospective reassessment of property tax.
Court’s Direction and Interim Relief
In its order dated April 8, the bench stated that upon filing an undertaking by the company’s director to deposit ₹23,89,31,590 within four weeks, the water connection must be restored immediately.
“On filing an undertaking… the water connection at the premises of the Company shall be restored forthwith,” the court observed.

The bench further stayed demand notices and attachment orders issued on January 1, February 12, February 16, and two notices dated February 23, 2026, until the next hearing.
Sources indicated that the company has already submitted the undertaking, following which the water supply has been reinstated.
Background of the Dispute
The dispute arises from a reassessment of property tax by the BMC concerning the five-star hotel located near Mumbai’s international airport in Vile Parle (East).
According to Sahara Hospitality Limited, the civic body carried out a retrospective reassessment in 2026 by splitting what was historically treated as a single property into multiple accounts. The company alleges that the BMC imposed tax liabilities dating back to 2019 for areas that were either non-existent or under development.
The plea claims that the reassessment resulted in demands totaling approximately ₹69.19 crore and attachment notices amounting to ₹181.96 crore, including penalties, without proper justification or opportunity for a hearing.
Arguments Before the Court
Senior Advocate Chetan Kapadia, appearing for the petitioner, argued that the BMC’s actions severely impacted the company’s right to conduct business.
He submitted that the disconnection of water supply amounted to a “civil death” of the company and highlighted that the tax demands—covering arrears allegedly dating back to 2001—were raised for the first time in 2026 under provisional assessment.
On the other hand, the BMC opposed interim relief, stating that the reassessment followed inspections which revealed unauthorized constructions. The civic body also argued that a Special Notice had been issued but was not responded to by the company.
Legal Proceedings
The petition seeks quashing of the demand notices, restoration of essential services, and protection from further coercive action.
The court has adjourned the matter for further hearing after six weeks.
Case Details
Case Title: Sahara Hospitality Limited vs Municipal Corporation of Greater Mumbai
Case Number: Writ Petition (L) No. 11536 of 2026
Appearance
For Petitioner: Senior Advocate Chetan Kapadia with Advocate Pooja Jain
For State: Additional Government Pleader Mohit Jadhav
For BMC: Advocates Pralhad Paranjpe, Oorja Dhond, and Komal Punjabi