Mumbai Port Authority mulls legal action as 8 entities default on lease rentals of Rs 3,500 crore

New Delhi: The Mumbai Port Authority on Monday alleged that as many as eight entities have defaulted on lease rentals of Rs 3,500 crore, and it has decided to crack the whip on such entities and recover dues with the help of law officials and law firms.

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To enforce public accountability and sensitise commercial tenants regarding immediate liquidation of arrears, the authority (MbPA) has compiled estimated combined liabilities of Rs 3,500 crore of eight top defaulters, the Port authorities said in a statement.

Stating that it has decided to crack down on defaulters and unauthorised occupants on the public land that falls under its jurisdiction on the eastern waterfront, MbPA alleged that a group of high-profile lessees and tenants have accrued lease rental arrears and have not been clearing their dues.

Instead, the Port authorities said that many of these entities, who are in fact generating massive profits from prime, state-owned Mumbai land, have dragged Mumbai Port Trust into protracted legal battles.

"Faced with numerous constraints affecting public projects, the Mumbai Port is shifting to an aggressive recovery mode and decided to review and revise its legal strategy in Court matters," it said.

In a landmark move signalling its resolve, the authorities have engaged "topmost law officials of the country and top-tier law firms, to spearhead the recovery of massive outstanding arrears from defaulters besides deciding to lodge criminal cases against unauthorised occupants," it said.

Under the Major Port Authorities (MPA) Act, 2021, the Mumbai Port Authority has finalised a Master Plan to overhaul the Eastern Waterfront.

Rather than standard civic spaces, these planned initiatives are designed as heavy economic drivers: an Iconic Maritime Economic Growth Hub featuring world-class maritime tourism centres (such as the Mumbai Marina), specialised water transport networks, international cruise terminals, and essential central government office complexes dedicated to port operations, it said.

These highly anticipated, port-centric infrastructure projects require massive, capital-intensive investments. Mumbai Port's long-term financial strategy and port vision rely heavily on channelling its own reserves directly into funding these mega-maritime projects. However, non-payment by chronic defaulters has choked this vital revenue pipeline, directly threatening Mumbai Port's maritime timeline, it said.

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Mumbai Port Authority, however, clarified that while it respects legitimate legal rights, it cannot turn a blind eye to the public requirements of Mumbai City and the nation's blue economy.

The Authority will no longer tolerate the delaying strategies used by commercial tenants, it said and urged all alleged defaulting tenants to come forward, clear their outstanding arrears, and cease draining public resources.

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