The Supreme Court has upheld the authority of the Navi Mumbai Municipal Corporation (NMMC) to impose and collect property tax from industrial units located within the TTC MIDC area, bringing an end to a legal dispute that had remained unresolved for more than 15 years.
The case, which had been pending before the apex court since 2010, was initiated by an association representing small-scale industries. The petition challenged whether the TTC MIDC industrial zone fell under the jurisdiction of the Navi Mumbai civic body and questioned NMMC’s authority to levy property tax in the area.
In its recent judgement, the Supreme Court examined the provisions of the Maharashtra Municipal Corporations Act, the Maharashtra Industrial Development Act, 1961, and the Maharashtra Regional and Town Planning (MRTP) Act, 1966. After reviewing the relevant legal framework governing municipal administration and industrial development, the court concluded that the entire TTC MIDC area falls within NMMC’s jurisdiction.
The court also addressed concerns raised by industrial units regarding what they described as “double taxation.” Petitioners argued that since industries were already paying various charges to the Maharashtra Industrial Development Corporation (MIDC), they should not be subjected to municipal property tax as well.
Rejecting this contention, the Supreme Court clarified that taxes and fees are legally distinct in nature. The judgement noted that taxation is a sovereign power exercised by local self-government institutions such as municipal corporations, whereas fees are collected in return for specific services or facilities provided.
The court further observed that MIDC is authorised only to collect service-related charges and fees within industrial estates and does not possess the statutory power to levy municipal taxes. Referring to Sections 127 and 128A of the Maharashtra Municipal Corporations Act, the court affirmed that the authority to impose property tax in the TTC MIDC region rests exclusively with NMMC.
Following the verdict, NMMC Commissioner Dr. Kailas Shinde welcomed the ruling, stating that it clears the path for property tax recovery across the industrial belt. He noted that municipal tax revenues support civic infrastructure and urban development projects and urged industrial establishments in the TTC MIDC area to clear pending dues and contribute to the city’s growth.
Source: Prop News Time
