In Brief
The Supreme Court upheld the Delhi High Court's decision striking down the NDMC's 2009 Bye-laws introducing the Unit Area Method (UAM) for calculating property tax as ultra vires the NDMC Act. The Court held that Section 63 of the NDMC Act mandates determining rateable value based on annual rent a property can reasonably fetch, not on property valuation parameters. The UAM fundamentally changed the assessment methodology contrary to statutory prescription. However, recognizing that 95% of assessees had voluntarily paid taxes under these Bye-laws and settled their accounts, the Court exercised powers under Article 142 to prevent complete upheaval: assessees who paid taxes as per the 2009 Bye-laws need not have assessments reopened, except writ petitioners whose cases follow High Court directions for reassessment."
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