Mumbai: The property association in Mumbai is preparing to legally contest the Greater Mumbai Municipal Corporation regarding the newly revised property tax assessment method.
The Bombay High Court has agreed to hear their plea and has instructed the municipal corporation to submit its response by November 11. This hearing will also include the complaints raised by two other organizations against the same civic body.
This association boasts over 8,000 active members statewide, and the outcomes of these legal challenges are anticipated to significantly affect numerous property holders, charitable organizations, and religious institutions within the city. The association is aiming for a stay order on the recently instituted property tax calculation system.
As per the claims presented in the plea, the property tax should be reasonable and take into consideration the financial capability of property owners. Previously, five trusts in Mumbai filed a complaint with the court against the municipal notices that highlighted tax calculations based on the capital value of properties.
Under the new framework, property tax is set at 1.3% of the capital value for commercial properties and 0.35% for residential units. Although certain concessions were extended to charitable organizations, no such benefits exist in the revised system.
In the event that the verdict does not favor the association, they are prepared to escalate their challenge to the Supreme Court. Additionally, they have reached out to the Chief Minister of Maharashtra to seek intervention on this matter.