Apex court sets aside HC order on property tax in Nariman Point

Setting aside Bombay High Court's judgement of March 2006, the Supreme Court on Tuesday allowed Co-operative Societies of Nariman Point to file an appeal in the dispute relating to property taxes affecting the city's financial hub.

The apex court while observing that the Bombay High Court's judgement did not correctly consider the earlier 2003 order of the Supreme Court in the Kamla Mill case, remanded for fresh consideration of the municipal corporation's appeal filed in Bombay High Court.

The dispute revolves round the measure of rateable value on which property tax could be charged. Till March 2000, the municipal corporation accepted standard rent as the only measure and the property taxes were restricted to Rs 2 per sq-ft.

The municipal corporation claimed after the 1999 Rent Control Act, it can charge the rent received by a member of a co- operative society as basis of rateable value. Between 2000- 2007, for rented premises property tax ranged between Rs. 19.50 psf to Rs. 32 psf.

Since April 2008, the municipal corporation charged on actuals, thus raising property tax to Rs 156 psf, on the basis of the Bombay High Court's order passed in March, 2006 which is now set aside and will need to be considered afresh.