Supreme Court Confirms NMMC's Authority to Collect Property Tax in Thane-Belapur Industrial Belt

The Supreme Court has delivered a significant verdict, confirming the Navi Mumbai Municipal Corporation (NMMC) as the competent authority to collect property tax in the Thane Trans Creek-MIDC (TTC-MIDC) area, also known as the Thane-Belapur industrial corridor. This decision, which came in a case filed by the Small Scale Entrepreneurs Association (SSEA), paves the way for the NMMC to collect property tax from over 3,000 industries in the region.

The SSEA had initially filed a petition in the Bombay High Court in 2001 challenging the NMMC’s property tax collection order. The association argued that there was a jurisdiction issue as the Maharashtra Industrial Development Corporation (MIDC) was also levying service charges in the area. The High Court ruled in favor of the NMMC, and the SSEA subsequently challenged this verdict in the Supreme Court in 2010.

The Supreme Court’s ruling clarifies that the entire TTC-MIDC area falls under the jurisdiction of the NMMC, based on the provisions of the Maharashtra Municipal Corporation Act (MMC), the Maharashtra Industrial Development Act, 1961 (MIDC), and the Maharashtra Regional and Town Planning Act, 1966 (MRTP). The court emphasized that tax and fee are distinct, with the sovereign right to levy taxes belonging to the municipal corporation as a local self-government body.

The court further clarified that while the MIDC can levy fees, it does not have the authority to impose taxes. This distinction is crucial, as it addresses the concern of double taxation. The Supreme Court’s decision states that the NMMC has the right to levy taxes under Sections 127 and 128A of the MMC Act. Kailas Shinde, the Municipal Commissioner of NMMC, expressed his satisfaction with the verdict, stating that the issue of property tax levy in the TTC-MIDC area, which has been pending for many years, has now been resolved.

Shinde added that the revenue collected through property taxes would be instrumental in funding city development projects. He urged all small entrepreneurs to contribute to the city’s development by paying their property taxes in accordance with the Supreme Court’s order. The pending property tax dues are estimated to exceed Rs 800 crore.

However, K R Gopi, the ex-president of SSEA and current president of the TTC-MIDC Industries Association, has indicated that the association will challenge the court’s decision by filing a review petition. Gopi stated that they will present their case once again, arguing against the perceived dual taxation from both the MIDC and the NMMC.

This ruling is expected to have a significant impact on the financial and developmental landscape of the Thane-Belapur industrial belt, providing clarity and a legal framework for property tax collection in the region.