BMC's tax recovery hopes crash as seized choppers now worth just Rs 45 lakh

A modern pre-owned Squirrel costs around $2.4 mn or around Rs 18 crore

Two helicopters parked at a Juhu hangar seemed like a prized recovery for the BMC after it seized the flying machines from a property tax defaulter in March 2020. While the pending tax was then Rs 1.95 crore, the civic body's hopes crashed when it found that the choppers are worth a mere Rs 45 lakh as many parts were missing from them.

MESCO Aerospace owed Rs 1.65 crore to the BMC in property tax as of March 2019. The BMC disconnected the water supply to its office but the company still didn't pay up. The next year, the civic body seized its two Eurocopter AS350 Ecureuil (Squirrel) choppers at Juhu aerodrome. The pending tax has now soared to Rs 2.76 crore.

The seizure of the helicopters had hit the headlines as it was the first time the BMC used the Schedule K of the Property Tax Act to attach moveable assets like copters and high-end cars. "The civic body collected property tax worth Rs 293 crore in just five days after it seized the two helicopters in March 2020. Before that, the collection was around Rs 10 crore per day," said an official from the BMC.

One of the Eurocopter AS350 Écureuil (Squirrel) choppers at Juhu aerodrome. This was the first case where BMC has seized helicopters over unpaid property tax

A civic official said the auctioning of the seized assets got delayed due to the COVID pandemic. "Despite giving notices, we haven't received any reply from the company. The corporation even sought an opinion from the legal department and took out information on whether the helicopters were mortgaged. Then BMC has decided to auction it and appoint a third party to evaluate the cost of the helicopters," said a BMC official.

While BMC officials did not reveal the exact cost of the evaluation, sources said the choppers are at least 25 years old without much maintenance. "Even they are prone to corrosion due to sea wind at Juhu aerodrome. The scrap value will not exceed Rs 45 lakh," said a source. Now known as Airbus Helicopters H125, the chopper is a single-engine light five passenger helicopter. A modern pre-owned Squirrel costs around $2.4 million - approximately Rs 18 crore.

"We have done the evaluation of the cost of the helicopters but the price is much below our expectation. After inquiring we found that many important parts from the aircraft are missing and so the value is not much," said P Velrasu, additional municipal commissioner. He added, "We are seeking other ways to recover the taxes and will write to the Airport Authority of India about the same."

mid-day tried to contact MESCO Aerospace but the company did not respond. Sources said another helicopter that had been hired by the company was involved in the ONGC helicopter crash on August 11, 2003, which killed 27 of the 29 people on board.

Rs 2.76 CR
Unpaid property tax of Mesco as of March 2022