SC Upholds NMMC's Property Tax Authority in Thane-Belapur Industrial Belt

The Supreme Court has ruled that the Navi Mumbai Municipal Corporation (NMMC) is the competent authority to collect property tax in the Thane Trans Creek-MIDC area, commonly known as the Thane-Belapur industrial corridor.

The judgment was delivered in a case filed by the Small Scale Entrepreneurs Association (SSEA), bringing clarity to a dispute that has been ongoing for several years.

Background of the Dispute

The SSEA had challenged NMMC’s property tax collection order before the Bombay High Court in 2001. The association argued that there was a jurisdictional issue because the Maharashtra Industrial Development Corporation (MIDC) was also collecting service charges in the area.

The Bombay High Court ruled in favor of NMMC. The SSEA subsequently challenged that decision before the Supreme Court in 2010.

Court Clarifies Jurisdiction

The Supreme Court held that the entire TTC-MIDC area falls within the jurisdiction of NMMC based on provisions of the Maharashtra Municipal Corporation Act, the Maharashtra Industrial Development Act, 1961, and the Maharashtra Regional and Town Planning Act, 1966.

The ruling clears the way for NMMC to collect property tax from more than 3,000 industries located along the corridor.

Tax and Fee Are Different, Says Court

The apex court stated that taxes and fees are distinct in nature. According to the judgment, the power to levy taxes rests with the municipal corporation as a local self-government body.

• NMMC has the authority to levy and collect property tax.
• MIDC can levy fees and service charges.
• Fees collected by MIDC are separate from municipal taxes.
• The court rejected claims of double taxation.

Impact of the Judgment

NMMC Commissioner Kailas Shinde stated that the verdict settles the long-pending issue of property tax collection in the TTC-MIDC area and clears the path for municipal tax recovery.

According to NMMC, pending property tax dues in the area exceed ₹800 crore. The civic body stated that revenue collected through taxes supports city development works and infrastructure projects.

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