The Brihanmumbai Municipal Corporation (BMC) has been ordered by the Supreme Court to refund 2010–2012 property tax payers and modify the capital value of all Mumbai properties. The Supreme Court and High Court ordered the BMC to revise property tax legislation and invoices.
In a recent development, the Supreme Court has ordered the Brihanmumbai Municipal Corporation (BMC) to revise the capital value of all properties in Mumbai and reimburse individuals who have paid property tax for the years 2010 to 2012 in accordance with the Capital Valuation System (CVS).
According to a report from the Times of India, the BMC’s review petition challenging a 2019 Bombay High Court order has been rejected by the Supreme Court.
In a recent development, the Bombay High Court has invalidated specific regulations formulated by the Brihanmumbai Municipal Corporation (BMC) for the purpose of retrospective tax evaluation. The court has instructed the BMC to draft new regulations and distribute updated bills accordingly.
The case dates back to 2013, according to sources.
In 2013, the Property Owners’ Association and other parties brought a case before the Bombay High Court. The case challenged the constitutional validity of an amendment to the Mumbai Municipal Corporation Act, 1888 that pertained to the imposition of property tax.
Former Congress corporator Asif Zakaria, who served as a Standing Committee member, has brought attention to the issue of faulty implementation of tax assessment on multiple occasions. According to the individual, the order will carry significant consequences, given that property tax represents the second most substantial revenue stream for the civic agency.
The recent ruling by the Supreme Court has put the spotlight on the obligation of the Brihanmumbai Municipal Corporation (BMC).
In a recent development, the Supreme Court has rejected the review petition filed by the BMC. As a result, the BMC will now have to undertake the task of recalculating the capital value of all properties in Mumbai for the years 2010 to 2012 in accordance with the CVS. The process will require a thorough evaluation of the properties and a determination of their capital value in order to facilitate property tax assessment.
The citizens who have paid property tax for the years based on the previous rules that have now been set aside are entitled to a refund from the BMC as per their obligation. In a recent development, the court has ordered the Brihanmumbai Municipal Corporation (BMC) to draft new regulations and generate updated invoices for the evaluation of property tax.
The High Court has issued an order and provided direction.
As per a 2019 order by the Bombay High Court, the assessment in accordance with the CVS must be carried out prospectively from 2012, the year when the rules were implemented, and not retrospectively. According to the report, the high court has nullified the special assessment order and bills that were issued under the CVS from 2010 onwards.
The corporation has been directed to re-determine the capital value of properties for tax assessment purposes and follow the process outlined in the Act. As per the latest development, the BMC has been restrained from imposing property tax on the basis of the Capital Value System (CVS) for the years preceding 2012. It has been directed to revise the assessments accordingly.
The impact and implications of the matter are currently under scrutiny.
The recent rulings by the Supreme Court and the high court are expected to have far-reaching consequences for both the Brihan mumbai Municipal Corporation (BMC) and the residents of Mumbai. The BMC is facing a significant financial burden due to the refund of property tax for the years 2010 to 2012. This is because taxpayers who have already paid property tax based on the now set-aside rules will need to be reimbursed.
The BMC is expected to face administrative and logistical challenges as it works to rework the capital value of properties and issue fresh bills. This case underscores the significance of adhering to due process and abiding by regulations when imposing and evaluating property taxes.
