Nagpur: In a recent development, the Nagpur Bench of the Bombay High Court has issued a directive compelling plot owners within the MIDC industrial area to fulfill their property tax obligations for the period post the 2018-19 financial year. This crucial mandate emphasizes the need for timely payments to the respective Gram Panchayats, setting a deadline of February 14. Justices Avinash Gharote and M S Jawalkar, constituting the Division Bench, delivered this order on January 30. Notably, the court addressed a longstanding dispute concerning the calculation method for arrears preceding the 2018-19 period.

Navigating the Tax Conundrum: MIDC Industrial Area

The plot owners find themselves at the epicenter of a legal tussle, challenged by Sonegaon Gram Panchayat, Digdoh Gram Panchayat, Wadi Gram Panchayat, and Nildoh Gram Panchayat regarding the property tax demands. Acting collectively under the banner of the MIDC Industries Association, the property owners have presented a petition outlining four crucial grounds.

Challenges Raised by Property Owners

1. Three-Year Cap: The petitioners assert that Gram Panchayats cannot rightfully demand taxes for more than the preceding three years as arrears.
2. Non-Retrospective Application: The G.R. of 2018, as per the second point in the petition, cannot be retrospectively applied for the period before 2018 (2000 to 2018).
3. Vague Demands: The third point underscores the ambiguity in the demands issued by Gram Panchayats, lacking clarity on both the basis and the period.
4. Non-Adherence to Taxation Rules: The property owners contend that taxes were levied without following proper assessment procedures, violating established rules.

Court Proceedings and Ruling

The petition, scheduled for final arguments on January 30, witnessed an unexpected twist when the Gram Panchayat raised objections. They argued that property owners weren’t complying with tax payments even for the period after 2018. Consequently, the Court directed the petitioners to instruct property owners to settle taxes from 2018 onwards. The Court’s rationale was grounded in the belief that, while the dispute pertains to the period before 2018, resolving the immediate concern involves paying taxes from 2018 onwards.

Advocate P P Kothari represented the petitioners, countering the objections raised, while AGP Shyamsi Haider and Adv P S Khubalkar advocated for the respondents.

Frequently Asked Questions (FAQs)

Q1: Why is there a dispute regarding property taxes in the MIDC industrial area?

A1: The dispute stems from the calculation method of arrears before the 2018-19 period, prompting a directive from the Bombay High Court for property owners to pay taxes post-2018-19.

Q2: What grounds have the property owners raised in their petition?

A2: The property owners, acting through the MIDC (Ngpur) Industries Association, challenge the three-year cap on tax demands, the non-retrospective application of G.R. 2018, vague demands lacking clarity, and the alleged violation of taxation rules.

Q3: Why did the Court direct property owners to pay taxes from 2018 onwards?

A3: The Court, in response to objections raised by Gram Panchayat, emphasized addressing the immediate concern by instructing property owners to settle taxes from 2018 onwards.

Q4: Who represented the petitioners and respondents in the court proceedings?

A4: Advocate P P Kothari represented the petitioners, countering objections, while AGP Shyamsi Haider and Adv P S Khubalkar advocated for the respondents.

Q5: What is the deadline for property owners to pay taxes according to the court directive?

A5: The Bombay High Court set a deadline of February 14 for MIDC plot owners to fulfill their property tax obligations to the respective Gram Panchayats.

Q6: How does the Court view the tax dispute in the MIDC industrial area?

A6: The Court perceives the dispute as primarily concerning the period before 2018; however, it mandated property owners to address the immediate concern by settling taxes from 2018 onwards.

The recent directive from the Nagpur Bench of the Bombay High Court adds a new chapter to the ongoing saga of property tax disputes in the MIDC industrial area. While the core of the issue lies in the calculation method of arrears, the Court’s directive seeks to bring immediate resolution by instructing property owners to fulfill their tax obligations post the 2018-19 financial year. As both sides present their arguments, the legal landscape surrounding property taxes in the MIDC industrial area continues to evolve, awaiting further developments and clarifications.