MCDs claim Rs 1,000 cr property tax from DDA
25 March 2014 5:39 AM IST
According to all municipal corporations, the Delhi Development Authority has not paid Rs 1,000 crores as property tax to the civic bodies. This sum has remained pending for many years. DDA owes around Rs 400 crore each to South and North Delhi Municipal Corporations and Rs 200 crore to East Delhi Municipal Corporation.
The land authority has long maintained that the properties are union properties and hence not entitled for property tax. It also stated that the said properties are only eligible for service tax. A civic officer requesting anonymity said that the DDA is earning revenue from its sports complexes and it should pay property tax for these. ‘We believe that DDA properties do not come under Union of India properties’, he said.
‘According to section 119 of Delhi Municipal Corporation Act, any Union property owned by a government entity or a statuary body having a personality of its own will not be considered Union property,’ the official added.
The civic bodies attached the bank accounts of DDA last year for failing to pay tax after repeated notifications and managed to recover some amount. However, the DDA filed a writ petition in the Delhi High Court challenging the attachment of its bank account and stating that its properties are matter pertaining to the union government and are not entitled to pay property tax.
Meanwhile, the court has stayed the civic bodies’ demand for property tax and cancelled the attachment of DDA’s accounts. It also asked that DDA and municipal bodies to arrive at a consensus on whether the properties are come under the union or not.
MSA Khan, additional commissioner of North Delhi Municipal Corporation (NDMC) said that after conducting a thorough inquiry they have issued an order on 19 March stating that the properties are not union. ‘The properties are not union and entitled for property tax,’ said Khan. However, he also added that the DDA is again likely to challenge the order in the High Court to avoid the tax.
The land authority has long maintained that the properties are union properties and hence not entitled for property tax. It also stated that the said properties are only eligible for service tax. A civic officer requesting anonymity said that the DDA is earning revenue from its sports complexes and it should pay property tax for these. ‘We believe that DDA properties do not come under Union of India properties’, he said.
‘According to section 119 of Delhi Municipal Corporation Act, any Union property owned by a government entity or a statuary body having a personality of its own will not be considered Union property,’ the official added.
The civic bodies attached the bank accounts of DDA last year for failing to pay tax after repeated notifications and managed to recover some amount. However, the DDA filed a writ petition in the Delhi High Court challenging the attachment of its bank account and stating that its properties are matter pertaining to the union government and are not entitled to pay property tax.
Meanwhile, the court has stayed the civic bodies’ demand for property tax and cancelled the attachment of DDA’s accounts. It also asked that DDA and municipal bodies to arrive at a consensus on whether the properties are come under the union or not.
MSA Khan, additional commissioner of North Delhi Municipal Corporation (NDMC) said that after conducting a thorough inquiry they have issued an order on 19 March stating that the properties are not union. ‘The properties are not union and entitled for property tax,’ said Khan. However, he also added that the DDA is again likely to challenge the order in the High Court to avoid the tax.
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