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Verdict on Appeal by BMC Mumbai

No Comments Sub Category:Realty News,Uncategorized Posted On: Sep 12, 2011

The Bombay High Court pronounced a split verdict on an appeal with Brihanmumbai Municipal Corporation (BMC). The Civic Body under the jurisdiction of Maharashtra Rent Control Act was empowered reassess properties on the basis of steep market rents payable by individual occupants exempted under the rent law.

The battle began when the civic body reassessed the ratable value of a 15-storey commercial building, which has 199 self-occupied premises, 75 leased units and 116 open car park slots at Rs 1.74 crore for 2000-01. The property tax is almost 100-150% of the ratable value.

Justice Deshmukh also said the BMC itself recognized the “Maharashtra government lessee Dalamal & Son Investment Co” as the property tax payer and not an individual occupant of the building. The BMC stand will lead to an “absurd, scary, inequitable and unmanageable” situation, Dalamal Tower residents say, as housing or commercial society will be assessed differently for separate categories of occupants in the same building. In Dalamal Tower, three categories of occupants-self occupied, protected tenants (paid standard rent) and non-protected tenants (paid market rent) stayed.

Almost a decade after this dispute reached The Bombay High Court, issues are yet to be decided if BMC can fix property tax based on the prevailing market rent.

Times of India

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