Madras high court rejects plea from DMK MLA E V Velu against revised property tax

Chennai: The Madras high court has dismissed a petition from DMK MLA and former minister E.V.Velu, which sought to retrain the authorities from demanding exorbitant property tax for the period from half of 2017-18.

A division bench comprising Justices S.Manikumar and Subramonium Prasad dismissed the petition filed by E.V.Velu, which also sought to quash the government orders dated July 19, 2018 and July 26, 2018,
revising the property tax and the consequential notification.

Petitioner contended that the classification of entire Tiruvannamalai municipality into 3 zones under the impugned guidelines framed by Tiruvannamalai municipality commissioner by dividing the same as A to C zones and applying fixed increase of rates to properties located in these zones at Rs 3.30 per sq.ft, Rs 2.50 per sq.ft and Rs 1.60 sq.ft respectively was highly irrational, whimsical, discriminatory and violative of Article 14 of the Constitution.

After perusing the GOs, circular, which laid down guidelines for the revision of property tax with effect from first of the year 2018-19 and the consequential notifications, the bench said a perusal of the procedure showed that a detailed study was done to ensure that no property escapes the net of property tax. The proposed notification informing people about the property tax was also prepared.

Based on the circulars, Tiruvannamalai municipality has been divided into three zones. All the streets in the Municipality were divided in accordance with the circular. Based on the circular, division of the category has been changed and a notification has been issued. A perusal of the notification dated October 16, 2018 showed that 278 streets were divided as Zone A, 162 streets divided as Zone B and 15 streets divided as Zone C, the bench added.

The bench said, “The above mentioned exercise and circulars issued would show that the averments of the petitioner that there is no basis for increasing the property tax cannot be accepted. This court is not venturing into a street by street analysis of up-gradation from Zone C to Zone B or Zone B to Zone A. It is also to be seen that some cases, streets has been downgraded. It cannot be said that the rates are fixed without any basis. The calculation of the base rate has been fixed strictly in accordance with the circular. Other than making a bald statement that the rate fixed is highly irrational and discriminatory, the petitioner has not been able to demonstrate as to who there is discrimination and the entire exercise is arbitrary in nature. Property tax has been devised on the basis of zones, which has been fixed on the basis of the guidelines laid down in the circular. The municipality has been divided into three zones. The criteria as to how the zones are to be demarcated is well defined and tax has been revised”.

It cannot be said that this method of dividing the Municipality into three zones, taking into account, the location, predominant usage, the infrastructure available for the area as arbitrary or whimsical, the bench added.