In Brief
The Supreme Court upheld the High Court's decision striking down Rules 20, 21 and 22 of the Capital Value Rules (2010, 2015) framing property tax assessments for Mumbai Municipal Corporation. The Court held that capital value assessments can only consider the present physical attributes of land and buildings, not future development potential (FSI or TDR). The Court affirmed that the Rules came into force on 20.3.2012 and cannot apply retrospectively. The constitutional validity of the capital value system and amendments to the MMC Act were confirmed, and challenges based on Article 14 and delegation concerns were rejected. All appeals were dismissed.
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