Once coveted for its prime office space, Nariman Point is now seeing a mass exodus of tenants. A new tax structure announced by the BMC in April has pushed the cost of rents beyond the affordability of many businesses, who have now decided to vacate their tony south Mumbai address in favour of more economical offices in other parts of the city. Owners of 3,000 office spaces in the area are now worried as tenants have already begun to move, with many others likely to follow suit. M B Vakharia, chairman of Nariman Point Association (NPA) confirmed that many tenants have given notices, saying they would be moving out. An international cola company, which had its office in Nariman Point, has now decided to move to Chennai as “they could not afford to bear the increased property tax liability. Similarly, a well-known bank, which had been renting an office on the ground floor of another building in the vicinity, has now been asked to pay Rs 78,000 as property tax – this, in comparison to their old liability of Rs 12,000. The civic body in its directive fixed the new property tax at 112.5 per cent of the present rateable value of the commercial property. Under the rateable value system, which dates back to 1888, the BMC collects tax on the basis of rent a property earns. And since April, the civic body has been individually establishing the new values for Nariman Point properties.