Indian Express 15.04.2010
Housing society sues civic body over hike in property tax
Mohan Kumar Tags : houisng, property tax Posted: Thursday , Apr 15, 2010 at 0445 hrs
Mumbai: A Bandra housing society dragged the municipal corporation to court after it was served a notice to pay an exorbitant property tax. Members of Hill Road housing society have stated in their petition that the rateable value of the property (its rent-earning capacity) has been increased from Rs 33,090 to Rs 16,49,165 after three of 37 residential flats were rented out.The petition filed by Anjana Kshetry and Sanjeev Gautam of Hill Road Cooperative Housing Society states that in August 2008 the assistant assessor and collector of the municipal corporation had served a notice to the secretary asking for details of the flats after which the secretary furnished the details. On March 17, 2009, the secretary was “shocked and surprised” to receive a special notice informing the society that the rateable value has been increased to Rs 16,49,165.
The secretary met the ward officer and requested for a review of the increase. The assessor directed the secretary to lodge a complaint within 15 days of receipt of the notice. A complaint was lodged but after some delay. The petition states that the society was under the impression that they would get a hearing since the complaint had been lodged.
On July 8 it received a letter informing that the complaint was time-barred since it was not filed within 15 days. The assessor also refused to condone the delay.
The petition further states that the demand for such a huge property tax amounts to confiscation of the entire rent, and more, received by the members of the society. They also state that the actual rent cannot be made the basis of fixation of the tax.
The petitioners had urged the court to quash the notice and direct the corporation to give them a hearing. The petitioners’ lawyer Nilima Sanglikar argued that even the entire rent collected by the members won’t be enough to match the tax demand.
Division bench of Justice J N Patel and Justice A P Bhangale had then set aside the July 8 letter and held that the petitioners are entitled to a hearing before the assessing officer. The court then directed the petitioners to appear before the assessing officer within two weeks and directed the assessing officer to pass an order in accordance with law within 4 weeks.
The court also granted the petitioners the liberty to move court if they are not satisfied with the order.
