The Allahabad High Court refused to interfere with the Ghaziabad Municipal Corporation property tax hike, dismissing a plea by former councillors and upholding the revised MMRR-based assessment despite residents’ bills increasing three to four times.
PRAYAGRAJ: The Allahabad High Court has declined to intervene in Ghaziabad Municipal Corporation’s (GMC) decision to increase property tax, delivering a setback to residents whose bills rose three to four times following the revision.
A division bench comprising Chief Justice Arun Bhansali and Justice Kshitij Shailendra rejected a petition filed by three former GMC councillors, finding the corporation’s approach to determining the minimum monthly rent rates (MMRR) and using them to recalculate property tax to be lawful.
The court said that the exercise was “fully in consonance with the statutory provisions” and did not warrant interference.
It said,
“We neither find any error in determination of ‘MMRR’ nor any illegality in the impugned decision to revise/enhance the property taxes based upon ‘MMRR’,”
The order stated,
“The petition has no substance and the same is, therefore, dismissed,”
The controversy began on April 1 last year, when GMC introduced a new property tax schedule tied to the district magistrate’s circle rates. Under the new framework, rates increased from roughly Rs 0.7 to Rs 4 per sq ft, a change residents said amounted to about Rs 5,000 more in annual tax for many households.
The slabs differed by road width: properties on roads under 12 metres saw rates move from Rs 0.3 to Rs 1.6 per sq ft; those on 12–24 metre roads went from Rs 0.5 to Rs 2 per sq ft; and properties on wider roads were revised from Rs 0.65 to Rs 2.4 per sq ft. The hike prompted protests from resident welfare associations and other stakeholders, leading the GMC board to repeal the increase.
Despite that, the corporation kept issuing notices to defaulters based on the revised slab, keeping the dispute alive. In May last year, the former councillors approached the high court, arguing that municipal regulations permit a property tax increase only once every two years. They noted that the tax had already been raised by 10% for 2023–24 and was raised again for 2024–25.
A GMC official said the court’s verdict resolved questions about the new structure.
The official said,
“GMC calculates property taxes on the annual rental value (ARV). At present, the civic body’s consumers are over 6 lakh. With increased taxes, the corporation will generate additional revenue of over Rs 60 crore,”
Co-petitioner and former councillor Rajendra Tyagi said,
“While the court’s decision went in favour of GMC, we are mulling other legal options.”
Mayor Sunita Dayal acknowledged public frustration and pointed to temporary relief she had provided.
She added,
“The opposition by residents was very much understandable. So, I kept extending the rebate on property taxes for four months in a row. Now, after the court’s decision, the matter stands closed,”
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