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The Allahabad High Court has upheld the legality of a recent property tax increase by the Ghaziabad Municipal Corporation (GMC), dismissing a petition in the past week that challenged the revised tax slabs. The bench ruled that the method for fixing minimum monthly rent rates (MMRR) and the resultant hike in property tax were in accordance with statutory provisions. The tax structure, introduced on 1 April last year, raised per-square-foot rates based on road width, triggering significant increases in annual tax bills for many residents. Petitioners had contended that successive hikes violated municipal rules limiting increases to once every two years. The court found no procedural infirmity and confirmed that the revised slabs complied with legal requirements. Officials said the new structure is expected to generate additional revenue of over INR 60 crore for the civic body.
The Allahabad High Court has upheld the Ghaziabad Municipal Corporation's decision to revise its property tax structure, dismissing a legal challenge to the new slabs in a ruling delivered in the past week. A division bench, comprising Chief Justice Arun Bhansali and Justice Kshitij Shailendra, concluded that the method adopted by the civic body for determining the minimum monthly rent rates (MMRR) and consequent tax hike was lawful and in line with statutory provisions. Advertisement
The dispute centres on property tax reforms implemented by the GMC on 1 April last year, which altered per-square-foot rates based on the width of adjoining roads and aligned these with the district magistrate's circle rates. Under the revised structure, properties on narrower roads were assigned lower rates, while wider thoroughfares attracted higher per-square-foot tax rates. Several residents reported that the changes translated into steep increases in annual property tax, with many bills rising by roughly INR 5,000 or more.
Three former GMC councillors filed a petition before the high court, arguing that municipal regulations permitted a property tax increase only once every two years, and pointing to consecutive revisions in the 2023-24 and 2024-25 fiscal periods. They contended that the corporation's actions contravened this principle of periodicity and should therefore be set aside.
In its judgement, the bench observed that it saw no legal error in the determination of the MMRR or in the decision to revise property taxes on that basis. The court held that the process was fully consonant with statutory provisions and did not warrant judicial intervention, dismissing the petition as devoid of merit.
GMC officials indicated that the ruling provides clarity on the tax structure's legitimacy. The civic body calculates property taxes on the basis of Annual Rental Value (ARV), and with a consumer base exceeding six lakh properties, the revised regime is projected to yield more than INR 60 crore in additional revenue. Mayor Sunita Dayal acknowledged public discontent but underscored that temporary rebates were extended earlier to ease the burden on taxpayers.
Co-petitioner Rajendra Tyagi, one of the former councillors, said the court's decision favoured the GMC but indicated that other legal options might be explored, even as the judgement effectively concludes the current controversy over the property tax slabs.
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