NDMC property tax relief for traders in Khan Market, Connaught Place, Sarojini Nagar and Janpath delayed approximately six months as proposed changes await approval.

Proposed system intended to simplify property tax assessment in New Delhi Municipal Council area and address complaints over high rates and complex calculation methods.

Process requires approval from: Delhi government law department, then Union Ministry of Housing and Urban Affairs public consultation, then Ministry of Home Affairs final approval.

Traders claim NDMC property tax rates are around 15 times higher than Municipal Corporation of Delhi areas. Seeking reduction to approximately twice MCD level and more predictable assessment method.

Issue raised at meeting chaired by MP Bansuri Swaraj, attended by NDMC chairperson and trader representatives from Khan Market and Sarojini Nagar.

Traders requesting either deferral of current year payment until new system implemented or payment in instalments, fearing disputes over adjustments or refunds if revised framework introduced following year.

Proposed changes linked to Jan Vishwas (Amendment of Provisions) Act, 2026. Intended framework would replace existing complex assessment formula with transparent unit-area or practical rate-based system.

Reform expected to clarify assessment rules, reduce repeated administrative proceedings and legal disputes, and reduce scope for discretionary assessments in high-value commercial areas.

Delhi High Court dismissed a petition by Khan Market Welfare Association challenging NDMC's rateable value determination and property tax assessment methodology. The association, representing property owners, entrepreneurs and residents of commercial and mixed-use areas in NDMC jurisdiction, alleged similarly situated properties faced substantially different rateable values and tax liabilities. It sought direction to NDMC to formulate uniform methodology, constitution of expert committee to examine irregularities, and strict compliance with NDMC Act provisions.

Division Bench of Justice Anil Khetarpal and Justice Shail Jain held that court cannot substitute its own formulation for statutory authority's methodology or issue mandamus requiring courts to prescribe assessment systems. Judicial review addresses legality of power exercise, not court undertaking functions entrusted to statutory authority. Mere allegation of arbitrariness, discrimination or hardship does not justify court prescribing different system.

Court clarified NDMC remains subject to NDMC Act and constitutional limitations. Individual assessments can be challenged if shown contrary to statute, without jurisdiction, legally discriminatory or vitiated by impermissible power exercise. Court rejected prayer for expert committee, finding no statutory duty requiring its constitution.

Court found additional difficulty with petition maintainability: alleged prejudice from rateable value determination and property tax levy is suffered by individual property owners. Association cannot aggregate individual grievances to seek mandamus for personal rights. Petition was not public interest litigation and association failed to demonstrate independent infringed right.

Court did not examine merits of allegations regarding NDMC assessment methodology. Dismissal confined to specific prayers found not amenable to mandamus. Individual assessees retain remedies under NDMC Act against particular assessments, including rateable value challenges, statutory procedure non-compliance or unreasonable delay.

NDMC launched an anti-encroachment drive at Khan Market, removing oversized shop signages and other structures described as encroachments. Traders called the action misguided.

Khan Market in south Delhi is India's most expensive high-street retail location with monthly rent of ₹1,700–1,800 per sq ft, up 8% in October–December 2025 vs same period 2024, per Cushman & Wakefield report.

Other Delhi-NCR retail markets saw rents rise 2–14% in same period:

• Connaught Place inner circle: ₹1,150–1,250/sq ft, +4%
• Galleria Market Gurugram: ₹1,150–1,250/sq ft, +14%
• Kamla Nagar north Delhi: ₹480–510/sq ft, +11%
• Greater Kailash 1 M Block: ₹475–500/sq ft, +5%
• Karol Bagh: ₹395–415/sq ft
• Lajpat Nagar: ₹290–310/sq ft, +3%
• Rajouri Garden: ₹255–265/sq ft, +6%
• Punjabi Bagh: ₹260–275/sq ft, +2%
• Noida Sector 18: ₹200–220/sq ft, +8%

Khan Market has 156 shops and 50 restaurants. Middle lane revamp project delayed; traders report inadequate facilities. Traders at other markets complain of poor services despite high taxes and development charges.

NDMC laid foundation stone for revamp of middle lane in Khan Market on Saturday, 11 January 2026. Project includes: new drainage system, pavements and granite flooring; new water supply line, duct and conduit pipes for electrical and other utility services; replacement of existing manhole covers; installation of stainless-steel dustbins. NDMC vice-chairman Kuljeet Chahal stated 2026–27 budget emphasises redevelopment and upgradation of prominent markets, with Khan Market receiving special attention. NDMC is improving parking facilities, including proposal for new parking block at plot opposite Bible Bhavan in Khan Market, and creation of traffic-free zone. Khan Market described as globally renowned destination and capital's iconic commercial hub. NDMC introduced mechanised wet cleaning during night hours to ensure dust-free environment during shopping hours.