The Madras High Court has restrained the Greater Chennai Corporation (GCC) from collecting enhanced amounts of property tax. Justice Anita Sumanth granted the injunction while passing interim orders on a writ petition from K Balasubramaniam of Teynampet recently. The petition sought to quash the property tax general revision notice for 2022-23 dated June 28 this year.
When the matter came up on July 25, the Corporation Standing Counsel circulated a Council resolution dated May 30, 2022 of the GCC. This resolution was based on a government order from March 30 2022, and a consequent notification dated April 11, 2022.
The judge noted that the order merely enhanced half-yearly tax from Rs 3,695 to Rs 7,170 and there was absolutely no clarity on the changed mode of assessment. The counsel was also unable to throw any light on the method of computation.
The judge said that in circumstances like this, it is necessary for a computation sheet to be circulated which provides clarity in the method of assessment after the Council’s resolution. She added, “This is to ensure that the computation is in line with the mandate of the provisions of Chennai City Municipal Corporation Act, 1919, specifically, sections 98 to 100 (rules regarding how the government must calculate and collect property taxes) thereof. Despite an opportunity having been granted to the counsel to file counter after service upon the petitioner, no counter was filed till date. She was also unable to provide any clarity on the computational methodology that has been followed.”
The matter was posted for August 3 with a direction to the counsel to submit the file relating to the challenged enhancement on the said date. The judge also added that there will be a temporary stay on the enhanced amount until the next hearing.
The Tamil Nadu government, in April 2022, announced a revision in property tax to increase revenue for local bodies, proposing up to a 150% increase. The main opposition AIADMK protested the move and several party members walked out of the Legislative Assembly.
(With PTI inputs)