GHAZIABAD: The Allahabad High Court recently upheld the Ghaziabad Municipal Corporation’s (GMC) decision to raise property taxes. Former councillors are now seeking political avenues to reverse this decision, while still considering a legal challenge.
Rajendra Tyagi, a co-petitioner and former GMC councillor, mentioned they plan to approach the Supreme Court within the next 90 days to contest the ruling from February 25, although he expressed a preference for a political solution.
“Going to the Supreme Court is a lengthy process. We prefer resolving it politically for the greater good,” Tyagi stated.
The debate revolves around a new property tax structure implemented by the GMC starting April 1 last year, which aligned tax slabs with district magistrate (DM) circle rates. This revision caused property taxes for numerous households to increase by three to four times. Rates were adjusted from around Rs 0.7 per sq ft to as much as Rs 4 per sq ft, resulting in a significant hike in annual tax bills—approximately Rs 5,000 for many residents.
Under the updated system, tax rates differ based on road widths: properties on roads less than 12 meters are charged between Rs 0.3 and Rs 1.6 per sq ft; those on roads between 12 to 24 meters, between Rs 0.5 and Rs 2 per sq ft; and properties on wider roads see rates ranging from Rs 0.65 to Rs 2.4 per sq ft. Currently, six lakh properties are registered under the GMC, with property tax calculated based on their annual rental value (ARV).
Officials from the GMC argue that this revision will substantially enhance civic finances, which is crucial for funding infrastructure and development projects in the city. The corporation anticipates an increase in annual revenue exceeding Rs 120 crore. In the financial year 2025-26, the GMC collected Rs 375 crore from property taxes.
Despite this, the increase has faced strong opposition from resident welfare associations (RWAs), apartment owners, and trade organizations. Amid growing pressure, the GMC Board had indicated the possibility of rolling back the hike, yet continued to issue tax notices under the new slabs, keeping the controversy alive and prompting legal actions.
On February 25, a two-judge bench of the Allahabad High Court dismissed the petition from former councillors, affirming that the corporation’s method of establishing minimum monthly rent rates (MMRR) and adjusting the property tax accordingly was valid.
Following the ruling, Mayor Sunita Dayal noted the decision limited the chances for a reversal of the revised tax. She acknowledged her previous opposition to linking property tax to DM circle rates and mentioned she had successfully advocated for its removal in the past. “I had urged residents not to pay the increased tax while the case was in court. Now that the order is out, we must comply, though our legal team will review it closely,” she remarked.
Residents expressed disappointment over the ruling. Ashisk Kumar, a representative from the Supertech Apartment RWA, stated that the hike was without precedent. “We opposed it from the beginning. Many of us held off on payments in hopes that the court would rule in our favor, but it didn’t happen,” he said.
The political opposition is also intensifying. All India Congress Committee spokesperson Dolly Sharma accused the BJP-led government of unjustly targeting Ghaziabad. “Is Ghaziabad being treated like a cash cow for the government?” she questioned, adding that Ghaziabad now has the highest property tax among the state’s 17 municipal corporations. Sharma warned of citywide protests if the increase is not revoked. “The GMC Board possesses sufficient legislative authority to revert taxes to pre-April 2025 levels,” she asserted.
However, GMC officials defended the tax hike, insisting that the increased revenues are vital for the city’s progress. “The funds collected from property tax will be directed toward Ghaziabad’s development,” an official stated.
