Ambanis move HC against levy of property tax on hospital

The trustees of Malati Vasant Heart Trust, which runs Kokilaben Dhirubhai Ambani Hospital here, have approached the Bombay High Court challenging Brihanmumbai Municipal Corporation's demand of Rs 4.64 crore as property tax.

The civic body had refused to grant exemption that a charitable institute gets, stating that the hospital did not qualify.

The petitioners are Anil Ambani, Tina Ambani, Kokilaben Ambani and Dr Alka Mandke.

Their lawyer, senior advocate Rafiq Dada, assured the court today that the trust was willing to pay 50% of the amount pending the hearing.

Dada also pointed out that an association of private charitable hospitals has filed a petition in 2002 challenging levy of property tax, which is yet not decided.

A division bench of Justices DK Deshmukh and RG Ketkar then directed BMC not to take any action against the trust until the petition is decided.

In January this year, BMC had directed the trust to pay Rs 4.64 crore as property tax.