MCD directed to return excess property tax

A city court has directed the MCD to return a sum of Rs 2.84 lakh it had collected from a couple in excess of the actual property tax that should have been charged.

A city court has directed the MCD to return a sum of Rs 2.84 lakh it had collected from a couple in excess of the actual property tax that should have been charged.

Additional District Judge Kamini Lau also noted that the MCD had itself mentioned the amount as excess in its register, a fact that its official tried to deny during the recording of evidence before the court.

Noting that the couple had been directed to deposit transfer duty and plot tax for which no notice was issued to them by the MCD, the court said that the

MCD could not be permitted to retain the excess amount without showing any 8220;justifiable8221; cause.

8220;It seems that officers of the corporation have suddenly come up with a new idea regarding the liability of the couple for paying transfer duty and plot tax, only to justify the withholding of the excess amount,8221; the court said.

The order came on a plea submitted by Sarla and R P Mittal, who moved the court seeking recovery of the excess tax amount collected by the MCD on their house in South Delhi. They said that the civic body refused to pay the money despite several notices. The couple claimed that the civic agency had deliberately withheld Rs 2.84 lakh, money levied in excess towards property tax and rebate.

The MCD, in turn, claimed that the couple was not entitled to a refund of the amount as they had failed to deposit the 8220;open land8221; tax.

Story continues below this ad

However, the court noted that the MCD had not raised any claim for such a tax till the filing of the suit and its official had also not made any such plea in his written statement.

The court has now directed the MCD to pay interest at the rate of 10 per cent on the sum, besides refunding the excess amount.