Maharashtra government tables amendment bill to restore BMC’s power to collect property tax retrospectively

The Bombay High Court in 2019 and the Supreme Court in 2022 ruled that such rules could not be applied retrospectively, as the parent Act did not explicitly grant such powers to the commissioner. The courts also struck down key provisions, halting assessment and recovery of property taxes.

To address the situation, the proposed amendments seek to explicitly empower the commissioner to frame rules for determining capital value, including provisions for retrospective implementation. The bill also proposes re-enactment of the Capital Value Rules, 2010, with effect from April 1, 2010, and restoration of provisions enabling the levy and collection of property tax.

According to the government, revenue losses affected the civic body’s ability to provide essential services such as healthcare, water supply, education, transport, and housing. It also emphasised that property tax is the BMC’s main source of income.

The amendments were deemed necessary to address the legal hurdles highlighted by the courts and to prevent further revenue losses, ensuring the BMC can continue to discharge its constitutional responsibilities and maintain the city’s urban infrastructure.