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Home > Mumbai > Mumbai News > Article > Unconstitutional to levy non agricultural tax PIL

Unconstitutional to levy non-agricultural tax: PIL

Updated on: 24 March,2022 08:23 AM IST  |  Mumbai
Vinod Kumar Menon | vinodm@mid-day.com

Public interest litigation filed before the Bombay High Court challenges the constitutional validity of the state in levying Non-Agricultural Tax

Unconstitutional to levy non-agricultural tax: PIL

State has threatened appropriate action against defaulting society, which include freezing of societies’ bank accounts. Representation pic

Unimpressed by the stay announced on levying non-agricultural (NA) Tax in the state Assembly by Revenue Minister Balasaheb Thorat on Tuesday, the Maharashtra State Co-op Housing Federation Ltd and District Housing Federation have decided to go ahead with their Public Interest Litigation (PIL) filed before the Bombay High Court recently (March 2022), challenging the constitutional validity of the state in levying NA Tax. They have claimed that NA tax is arbitrary, leads to inequality and is misuse of the Maharashtra  Land Revenue Code and the Maharashtra  Town Planning Act.


The PIL demands that the entire NA tax should be abolished, as it is unconstitutional, where the state itself changes the usage of land from agriculture to non-agriculture, under the ambit of development activities like residential, industrial, commercial growth in urban, metro cities of Maharashtra, by approving the Development Plan. 


The PIL has been filed by Advocate Shreeprasad Parab, who is also the Expert Director at The Maharashtra State Cooperative Housing Federation Limited.


Knee jerk reaction of state

Advocate Parab, confirmed filing of PIL and said, “It is very evident from the knee jerk reaction of the state government on March 22, wherein the revenue minister had to announce a stay on the NA tax and subsequent announcement to appoint a committee to make changes in rules and regulation for the levying NA tax in areas that were recognised as agricultural zones, but used later for developmental purposes like residential, commercial and industrial set up. This was only because of the pressure from the federation and subsequent PIL filed by us, which is coming up for hearing on April 4.” 

Shreeprasad Parab, Advocate and Expert Director at The Maharashtra State Cooperative Housing Federation LimitedShreeprasad Parab, Advocate and Expert Director at The Maharashtra State Cooperative Housing Federation Limited

Advocate Parab, added, “Moreover, the Revenue Minister has announced only staying NA tax of Mumbai, Thane and Navi Mumbai, but as a federation we are concerned for across the state of Maharashtra. Our plea is to abolish the entire NA tax, itself, as it is an arbitrary decision of the government to tax common man, who are already suffering amidst the COVID-19 outbreak and subsequent lockdown. It is unconstitutional to levy such taxes retrospectively.”

State threatens societies

Advocate Parab added, “NA Tax is the assessment fixed on any land under the provisions of the Maharashtra Land Revenue Code (MLRC), 1966 to the use of land for non-agricultural purposes. The State Government has been levying and collecting NA Tax from various landholders in Maharashtra since the British Era.”

“The state has not raised demand notices for almost a decade and has suddenly started sending huge demands to various societies with retrospective dues and has set a deadline of seven days’ for clearing the huge bills, running into lakhs. The state has threatened to take appropriate action against defaulting society, which include freezing of societies’ bank accounts and subsequently attachment of the property on which the society stands. Interestingly, apart from residential housing societies, notices have been issued to even commercial and industrial outlets. We as a federation have already received more than 100 complaints from various residential / commercial societies in Mumbai, Thane and Navi Mumbai areas,” the lawyer said.

4 April
The date when the PIL will come up for hearing

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