Navi Mumbai: NMMC wins 22-year-old battle, can collect property tax from small scale industrial units

Navi Mumbai: NMMC wins 22-year-old battle, can collect property tax from small scale industrial units

The Small-Scale Entrepreneurs' Association (SSEA) had challenged the authority of the NMMC to collect property tax from the industrial units in the area.

Amit SrivastavaUpdated: Saturday, April 22, 2023, 08:12 PM IST
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NMMC headquarters | File Photo

Mumbai: The Navi Mumbai Municipal Corporation (NMMC) has won a 22-year-old battle against a section of entrepreneurs of small scale industrial units of Trans-Thane Creek (TTC) as the Supreme Court directed the civic body to collect property tax from all industrial units.  

The Small-Scale Entrepreneurs' Association (SSEA) had challenged the authority of the NMMC to collect property tax from the industrial units in the area. In 2010, the High Court had already dismissed the petition. However, the SSEA approached the Supreme Court. 

SC gives Aug 2 as next hearing date

The SSEA had approached the court, claiming that NMMC had no jurisdiction over them. The association asked for an exemption from paying propertytax. Since 1996, NMMC has been authorised to collect property taxes. Before that, it was being collected by Mumbai Industrial Development Corporation (MIDC). 

While hearing the petition on April 19, the Supreme Court has given a date of the next hearing on August 2, 2023. Meanwhile, it has directed small scaleentrepreneurs to clear all dues before the next hearing or the court will not hold the hearing. “If small entrepreneurs do not pay all outstanding property taxwithin the intervening period, the Supreme Court will not hold the next hearing. Similarly, the court also ordered NMMC to seal the property of defaulters,” said a senior civic official. 

2001 case

Since 2001, the issue was pending in court, and the civic body could not collect property taxes from small-scale industrial units. Now, the issue has been resolved and the civic body will receive a large amount of revenue. “Property tax is the biggest source of revenue of the Municipal Corporation and only through this is it possible for the corporation to provide quality civic facilities to the citizens,” said the municipal commissioner Rajesh Narvekar.

Sujata Dhole, additional commissioner and head of the Property Tax department said that the exact amount of property tax to be recovered from small-scale industries will be calculated by Monday. However, the amount is big as arrears have been pending for the last 22 years. “There are industrial unitswho have paid their taxes during this period,” said another senior civic official. 

Under the NMMC jurisdiction, there are a total of 3,25,179 properties of which 2,60,932 properties are residential, 58,611 properties are non-residential, and 5636 units are industrial. 

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