NEW DELHI: In an effort to streamline property tax assessments and minimize citizen harassment, both the Municipal Corporation of Delhi (MCD) and the New Delhi Municipal Council (NDMC) have introduced a series of reforms under the Jan Vishwas (Amendment of Provisions) Bill, 2025. These proposals aim to replace imprisonment and fines with penalties for various infractions under the DMC and NDMC Acts.
The bill suggests that the NDMC adopt the unit area method for property tax calculations, moving away from the rateable value approach for all properties in Lutyens’ Delhi. Officials explain that while this method has been in use in MCD areas since 2003-04, it was only implemented in select regions under the NDMC.
An official noted, “This calculation method was adopted by NDMC on April 1, 2009, through a bye-law, but since it wasn’t supported by an amendment to the law, the Delhi High Court invalidated it in 2017. The Supreme Court confirmed this ruling in 2019, stating that the rateable value method requires a legal amendment to be valid.”
Traders in popular markets, such as Connaught Place, who receive property tax bills based on the rateable or rental value method, have long advocated for a shift to the unit area calculation.
Officials acknowledged that the unit area method—which factors in six elements: unit area value, property area, use factor, structure factor, age factor, and tax rate—would enhance transparency and fairness in tax calculations. However, implementing this method will require amending 47 provisions of the NDMC Act, as stated by an official.
In total, the NDMC seeks to amend 105 provisions related to decriminalization under the Act. This includes converting imprisonment for certain offenses, like Section 298 ((1)&(2)) for unexcused absences of sweepers, into monetary penalties. The council also aims to transform imprisonment and fines for breaches of bye-laws, such as those outlined in Section 390.
The MCD has proposed its own legislative adjustments, including a revision to Section 123D (i) of the DMC Act, which currently allows for property tax assessments to be conducted up to seven years after the closure of that assessment year. An official explained, “This means MCD can only issue tax assessments and bills for up to seven years, unlike the current practice of issuing bills dating back to 2004 for properties that had unpaid taxes before the amnesty scheme.”
Additionally, MCD recommends modifications to Section 153, which requires the MCD Commissioner to provide a bill to the liable party when tax is due. The proposed changes clarify that the bill must be issued only after a physical survey or relevant data collection if the property is being assessed for the first time.
The Municipal Corporation of Delhi is also advocating for amendments that would impose penalties for infractions listed in Section 461 of the Delhi Municipal Corporation Act. This includes penalties for failing to disclose property tax obligations, not providing notice prior to erecting a new building, failing to submit a transfer instrument, and neglecting to inform about land and building devolution, all of which can incur severe penalties.
