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NDMC moves SC on property tax ruling

According to senior officials, the civic body had filed a petition in the Supreme Court, earlier this week, challenging the order on the grounds that HC decision allows room for corruption.

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The North Delhi Municipal Council has approached the apex court challenging the Delhi High Court's order that struck down the civic body's 2009 by-laws, under which it could charge property tax even on vacant land.

According to senior officials, the civic body had filed a petition in the Supreme Court, earlier this week, challenging the order on the grounds that HC decision allows room for corruption.

"We have filed a petition in the SC challenging the decision. In the by-laws, there is a formula specified for assessing property tax. If the bye-laws are not upheld, it may end up allowing for corruption by leaving the entire assessment to the discretion of one person — the assessing officer," said a senior officer.

The HC decision in July had come as a relief to a number of owners including those of top hotels and five-star properties. It gave its decision after a number of petitions were filed over the years by a group of property owners including hotels, corporates and RWAs alleging that the NDMC was charging property tax on vacant land where there was no construction at a rate equal to the constructed area.

In most cases, the amount has been pending for years resulting in hundreds of crores that needed to be paid. A High Court bench had then "invalidated" the action taken by the civic body under the 2009 by-laws. The new by-laws had changed the method (the formula) for assessing property tax.

Currently, there are around 7,000 properties from which NDMC collects taxes, of which around 350 are high-value properties like hotels, clubs and some central government establishments.

The NDMC has collected Rs 577 crore as property tax in 2016-17, a jump from Rs 479 crore in 2015-16.

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