Bombay HC asks to file fresh PIL over NA tax after state accepts five pleas

Court tells petitioners to withdraw PIL and file a fresh one only with issue of constitutional validity of levying non-agricultural tax and abolishing tax in Navi Mumbai

The PIL challenging the constitutional validity of the non-agricultural (NA) tax levied by the state government came up for hearing before the Chief Justice of Bombay High Court on April 4. Of the seven prayers, the state in its reply said that five prayers by the petitioners (housing federations) were already accepted. The HC has now asked the petitioners to withdraw their PIL and file a fresh one highlighting the two major points - a) Constitutional validity of levying NA tax in metro cities and b) abolishing NA tax in entire Navi Mumbai, as it is leasehold land.

The Maharashtra State Co-op Housing Federation Ltd along with the District Housing Federation had decided to file a Public Interest Litigation (PIL) before the Bombay High Court in the early weeks of March 2022, challenging the constitutional validity of the state levying non-agricultural (NA) Tax.

Demands

Advocate Shreeprasad Parab, who is also expert director at The Maharashtra State Cooperative Housing Federation Limited and represents the petitioners, said, “Out of two PILs that were filed before the Bombay High Court, one (filed by Pune Cooperative Housing Federation) came up for hearing. It was filed with similar seven prayers mainly to stay the demand notice of NA Tax issued by the state, to restrain the state from initiating coercive steps, to scrap the NA Tax for land in areas under the development plan and with regard to Navi Mumbai where the NA Tax shall not be levied to the housing societies being the lessee of the government.”

The arguments

The state argued that the prayers concerning the issue of the demand notice and initiating coercive steps are being complied with by the state and now it has stayed the issuance of demand notice for NA Tax. Therefore, the HC asked the petitioners to withdraw their PIL and file a fresh one only with the crucial issue of - a) constitutional validity of levying NA tax in metro cities and b) abolishing of NA tax in entire Navi Mumbai as it is leasehold land.

 B R Mhatre, secretary, Navi Mumbai Cooperative Housing Federation, said, “The state revenue department’s decision of levying NA tax retrospectively from way back since 2006, in some cases on residential/commercial and industrial societies, is nothing but an arbitrary and unconstitutional act. We have also challenged the constitutional validity of imposing NA tax, with a plea to abolish the same, in our PIL.”

Direct talks with authorities

Attempts are also being made by the directors of the Maharashtra State Housing Federations, to have direct communication with the state government on the NA tax issue and to assist the government in understanding the core issue of non-applicability of NA tax in metros and abolishment of the same in Navi Mumbai limits. The federation members have already held discussions with Vidyadhar Anaskar, chairman, State of Maharashtra Cooperative Council and Vijay Nahata, retired bureaucrat, and chairman of Mumbai Slums Improvement Board, and have expressed their concern about the issue, said advocate Parab.

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