Delhi High Court Asks NDMC To Explain ₹2.51 Crore Additional Property Tax Demand On Khan Market Shop

The Delhi High Court has directed the New Delhi Municipal Council (NDMC) to provide a detailed, period-wise calculation of an additional property tax demand of around ₹2.51 crore raised against a shop in Delhi's Khan Market.

The Division Bench of Justices Anil Kshetarpal and Bharat Parashar directed NDMC to furnish the computation within 15 days, along with legible copies of the assessment orders, notices and other documents relied upon to raise the demand.

The Court was hearing a writ petition filed by Gurvinder Saluja challenging the property tax assessment and the demand raised in respect of Shop No. 61, Khan Market.

The dispute arose after NDMC issued a notice in September 2023 proposing to increase the rateable value of the property from ₹1,62,400 to ₹1,42,91,100 with effect from April 1, 2023.

Thereafter, an assessment order passed in December 2023 determined rateable values for earlier periods dating back to 2012, resulting in a demand of approximately ₹2.66 crore. This included an additional demand of ₹2,51,86,094.

The High Court directed NDMC to specify the operative assessment order, the rateable value adopted, the applicable tax rate, the tax previously billed, the additional tax and other charges, as well as payments or credits adjusted against the outstanding amount.

It also directed the civic body to provide copies of the assessment order dated May 26, 2022, and the orders or decisions underlying entries made on its portal on September 29, 2022.

The Court clarified that the petitioner could pursue the statutory appellate remedy against the assessment. It did not adjudicate the merits of the challenge to the assessment in the writ proceedings.

It further directed that subject to the petitioner complying with the deposit condition imposed by an earlier order dated March 22, 2024, NDMC shall not take coercive steps to recover the demand until four weeks after furnishing the computation and relevant documents.

If the petitioner files an appeal within four weeks of receiving the documents and seeks interim relief, the protection against coercive recovery will continue until the interim application or the appeal is disposed of, whichever is earlier.

For Petitioner: Senior Advocate M. A. Niyazi along with Advocates Anamika Ghai Niyazi and Kirti Bhardwaj

For Respondent: Sanjay Sharma, ASC.