SC Upholds NMMC's Right To Levy Property Tax In TTC MIDC Area

Navi Mumbai: In a major relief for the Navi Mumbai Municipal Corporation (NMMC), the Supreme Court has upheld the civic body’s authority to levy and recover property tax in the TTC MIDC industrial area, bringing an end to a legal dispute that had remained pending since 2010.

The case was filed by an association of small-scale industries, which had challenged whether the TTC MIDC area falls under the jurisdiction of NMMC and whether the municipal corporation had the authority to impose property tax in the industrial zone.

Delivering its verdict, the apex court ruled that the TTC MIDC area comes under the jurisdiction of NMMC by referring to provisions under the Maharashtra Municipal Corporations (MMC) Act, Maharashtra Industrial Development (MID) Act, 1961, and the Maharashtra Regional and Town Planning (MRTP) Act, 1966.

The Supreme Court also clarified the distinction between “tax” and “fee”, observing that both are legally different. The court stated that the power to levy taxes rests with local self-government bodies such as municipal corporations, while fees are collected against specific services rendered and cannot be treated as taxes.

The court further noted that MIDC is empowered only to collect service charges or fees and not taxes. Referring to Sections 127 and 128A of the Maharashtra Municipal Corporations Act, the Supreme Court reaffirmed that NMMC has the legal authority to levy property tax in the TTC MIDC area.

With the ruling, the long-pending issue regarding property tax recovery in the industrial belt has been resolved, clearing the way for NMMC to proceed with tax collection in the area.

“Navi Mumbai Municipal Corporation’s authority to levy property tax in the TTC MIDC area has now been conclusively upheld by the Supreme Court. The revenue collected through taxes is utilised for various civic infrastructure and development projects across the city. I appeal to all small-scale industrial units to respect the apex court’s verdict and contribute towards the city’s development by paying property tax,” said NMMC Commissioner Dr. Kailas Shinde.

Civic officials said the verdict is expected to strengthen the municipal corporation’s revenue base and provide additional funds for infrastructure and urban development projects across Navi Mumbai.

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/