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Mumbai: The Brihanmumbai Municipal Corporation ,BMC) will have to be worked out again on the capital value of all the assets Mumbai and refund those citizens who have paid property tax for 2010 to 2012 capital valuation systemAfter the Supreme Court dismissed his review petition.
The SC had dismissed the review petition filed last month BMC Challenging the Bombay High Court’s 2019 order that set aside certain rules made by the BMC for retrospective tax assessment. Court has asked BMC to make new rules and issue new bills.
The genesis of the case dates back to 2013 when property owners associations and others approached the Bombay HC challenging the constitutional validity of an amendment to the Mumbai Municipal Corporation Act, 1888 with regard to levy of property tax.
The high court, in its order, had directed that valuation as per the Capital Value System (CVS) should be done prospectively from 2012, when the rules came into force, and not retrospectively. It quashed the bills raised under the Special Assessment Order and CVS since 2010.
The Corporation was directed to re-assess the capitalized value of the properties for assessment of taxes and follow the procedure laid down in the Act. It further said that the vacant land/open land should be assessed at Floor Space Index (FSI) of 1 and not at the potential FSI.
BR Bhattad, president of the Property Owners Association, said the decision has brought relief to property owners. “The BMC will now have to frame new rules and prepare new property tax bills as per the judgement,” Bhattad said. He said the excess amount collected by the BMC would either have to be refunded or adjusted in future bills.
Former Congress corporator Asif Zakaria, as a member of the standing committee, had repeatedly raised the issue of faulty implementation of property tax assessment, said the order would have major ramifications as property tax is the second largest source of revenue for the corporation. Is.
Zakaria said that the BMC should give refunds and rework the capital value. “Citizens should get refunds properly. BMC should not hike property tax steeply to justify the loss due to refunds.”
P Velarasu, additional municipal commissioner in charge of property tax assessment, said the BMC is in legal consultation. We will take necessary steps to protect the financial interests of BMC.
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