HC stays Rs 530-crore property tax levied on DDA by MCD

The Delhi High Court today stayed all the three municipal corporations' demand notice to DDA seeking payment of property tax of around Rs 530 crore on lands entrusted in the national capital for the purpose of development.
Justice Manmohan also issued a notice to the municipal corporations seeking their responses in four weeks and listed the matter for further hearing on January 21.
It also asked DDA to deposit with the Registrar General a bank guarantee of Rs 50 crore by December 1.
The court also asked the Lt Governor to meanwhile hold a meeting of senior officials of Delhi Development Authority (DDA) and the municipal bodies to resolve the issue.

The court was hearing a plea filed by DDA contending that a demand notice of around Rs 530 crore was sent to it on October 20 seeking property tax on various nazul properties given to it for development.
Attorney General Mukul Rohatgi, appearing for DDA, contended nazul lands are properties belonging to the union government and entrusted to the authority for the purpose of development.

He said DDA holds the nazul properties as custodian on behalf of the Centre and there is no transfer of ownership of lands to it, thus, by the operation of Article 285 of the Constitution these properties are exempted from taxation by states.

DDA, in its petition filed through advocate Giriraj Subramanium, has sought a direction to grant an exparte ad interim injunction and operation of the various demand notices, assessment orders and distress warrants issued by the municipal corporations.
The plea has alleged that in complete ignorance of the constitutional and statutory provisions, the respondent municipal corporations have been issuing demand notices and distress warrants against the authority seeking payment of property tax on the various properties.