The Allahabad High Court upheld the Ghaziabad Municipal Corporation property tax revision, ruling the new MMRR-based slabs lawful, as Chief Justice Arun Bhansali and Justice Kshitij Shailendra dismissed challenges to the enhanced municipal taxation framework.
PRAYAGRAJ: The Allahabad High Court has confirmed the Ghaziabad Municipal Corporation’s (GMC) decision to alter its property tax structure, dismissing a legal challenge to the new tax slabs in a ruling delivered last week.
A division bench consisting of Chief Justice Arun Bhansali and Justice Kshitij Shailendra determined that the method used by the civic body to establish the minimum monthly rent rates (MMRR) and the subsequent tax increase was lawful and compliant with statutory provisions.
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The dispute revolves around property tax reforms initiated by the GMC on April 1 of the previous year, which adjusted per-square-foot rates based on the width of adjacent roads, aligning them with the district magistrate’s circle rates.
Under the revised framework, properties located on narrower roads were assigned lower rates, while those on wider thoroughfares incurred higher per-square-foot tax rates. Many residents reported significant increases in their annual property tax bills, with increases of approximately Rs 5,000 or more.
Three former GMC councillors filed a petition with the high court, arguing that municipal regulations allowed for a property tax increase only once every two years. They referred to consecutive revisions in the 2023-24 and 2024-25 fiscal periods, asserting that the corporation’s actions violated this periodicity principle and should be overturned.
In its judgement, the bench stated that it found no legal error in the determination of the MMRR or the decision to adjust property taxes accordingly. The court ruled that the process was entirely in line with statutory provisions and did not warrant judicial intervention, ultimately dismissing the petition as lacking merit.
Officials from the GMC indicated that the ruling clarifies the legitimacy of the tax structure. The civic body bases property taxes on Annual Rental Value (ARV), and with a consumer base of over six lakh properties, the revised system is expected to generate more than Rs 60 crore in additional revenue.
Mayor Sunita Dayal acknowledged public dissatisfaction but emphasized that temporary rebates had previously been offered to alleviate the burden on taxpayers. Co-petitioner Rajendra Tyagi, one of the former councillors, remarked that while the court’s decision favored the GMC, other legal avenues might be considered, even though the judgement effectively resolves the current debate over the property tax slabs.
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