SC directs SME lobby to pay NMMC property tax arrears

The NMMC wins a 22-year-old property tax battle against the Small Scale Entrepreneurs Association.

June 6,2023: As per a Newsband report, following the apex court’s order, the NMMC has started the process of issuing notices to 424 small entrepreneurs to pay property tax . According to Sujata Dhole, additional commissioner, NMMC, many of these entrepreneurs have not paid property tax since the establishment of the Municipal Corporation. The NMMC has estimated to collect over Rs 150 crore from these defaulters.

The NMMC has around 1,650 small entrepreneurs, of which 597 have been paying the basic property tax. Around 497 regular taxpayers have contributed to around Rs 95 lakh as  taxes. The 424  small entrepreneurs are not paying the taxes.

April 24,2023: The Navi Mumbai Municipal Corporation (NMMC) has won a 22-year old court battle with the Supreme Court (SC) ordering Small Scale Entrepreneurs Association (SSEA) located in the MIDC Trans-Thane Creek to pay arrears related to property tax to NMMC.

The SSEA has been ordered to pay the arrears before August 2, 2023, the next hearing date fixed by the Supreme Court, failure of which will result in SC not conducting the hearing. The apex court has also allowed the NMMC to attach properties of the defaulters.

See also: MCGM property tax Mumbai: Your guide to paying BMC property tax

While NMMC mentions that these small scale industries fall under the jurisdiction of NMMC and they are legally allowed to levy property tax, the SSEA approached Bombay High court with writ petition in 2001 claiming that they don’t fall under NMMC’s jurisdiction and MIDC was their nodal agency to whom they paid property taxes. Bombay High Court rejected the writ petition in 2010, after which the SSEA approached the Supreme Court.

 

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

 

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