In Brief
An industrial area developed by Maharashtra Industrial Development Corporation (MIDC) in Trans Thane Creek was included within Navi Mumbai Municipal Corporation's (NMMC) geographical limits by a 1991 notification. The MIDC collects service charges from industrial lessees for infrastructure maintenance. The Court held that NMMC has the authority to levy property tax on the industrial units despite their payment of MIDC service charges—these are distinct from taxes. However, a statutory tax exemption under the Maharashtra Regional Town Planning Act protected the units from 1962 until December 1, 2005, when MIDC formally transferred infrastructure maintenance to NMMC. From that date onwards, NMMC could collect property tax without exemption.
The lawyer headnote and full judgment text are available to registered users.