Municipal bodies can charge property tax from residents only after a building has been issued an occupancy certificate (OC), the Kerala High Court (HC) has ruled.
“Without (an) occupancy certificate, the building would not get numbered and electricity, water and gas connections would not be provided to such building. If these facilities are not provided, the building does not become capable of being used for residential purposes or other purposes,” the single-judge Bench of Justice Dinesh Kumar Singh said in its order dated August 8, 2023, while delivering its verdict in the Baiju versus the secretary case.
While partially allowing his writ petition, the court said that the petitioner was liable to pay the tax for the period after issuance of the occupancy certificate and not prior to the said date. It added that the municipality was entitled to recover the tax from the date of issuance of the occupancy certificate.
Baiju Vs Secretary
In the present case, a writ petition was filed under Section 226 of the Constitution of India impugning demand notices issued to a multi-storied apartment constructed by the petitioner. The completion certificate for the building was issued on February 19, 2015, while the occupancy certificate was issued only on February 1, 2017, by the municipal corporation. The impugned demand notices were in respect of the property tax for the period from October 1, 2014, to February 28, 2017. The petitioner argued that he was not liable to pay property tax before issuance of the occupancy certificate, which was on February 1, 2017.
He further submitted that Section 233 of the Kerala Municipality Act and Rules, 1994, provided for levy of property tax by municipalities while Subsection (2) of Section 233 of the Act defines the buildings on which the property tax can be levied.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
sunita.mishra@proptiger.com
