GHAZIABAD: The Allahabad High Court has declined to interfere with the Ghaziabad Municipal Corporation’s (GMC) decision to increase property tax. This ruling comes as a setback for residents, whose tax bills have surged by three to four times due to the revision.
On Wednesday, a bench consisting of Chief Justice Arun Bhansali and Justice Kshitij Shailendra rejected a petition from three former GMC councillors, affirming that the corporation’s approach to setting minimum monthly rent rates (MMRR) and adjusting property tax accordingly was legally justified.
The court stated, “We find no error in the determination of ‘MMRR’ nor any illegality in the decision to revise property taxes based on it.” It concluded that the procedure was “completely in accordance with statutory provisions” and required no judicial intervention. Consequently, the petition was dismissed as lacking substance.
The controversy originated on April 1 last year when GMC introduced a new property tax slab aligned with district magistrate circle rates. Under this new structure, rates escalated from approximately Rs 0.7 to Rs 4 per square foot, with many households reporting an increase of about Rs 5,000 in annual tax. The tax rates varied according to road width, with properties on narrower roads being taxed from Rs 0.3 to Rs 1.6 per square foot, and those on wider roads from Rs 0.65 to Rs 2.4 per square foot.
This provoked protests from Resident Welfare Associations (RWAs) and others, leading the GMC board to consider repealing the hike. Nevertheless, the corporation continued to issue notices to defaulters based on the new rates, perpetuating the debate. In May of last year, the former councillors challenged the increase in the high court, arguing that municipal regulations permit an increase in property tax only once every two years. They noted that taxes had already risen by 10% for the 2023-24 period, and again in 2024-25.
A GMC official commented that the ruling clarified matters related to the new tax structure. “GMC calculates property taxes on the Annual Rental Value (ARV). Currently, the civic body serves over 6 lakh consumers. This tax increase is expected to generate additional revenue of over Rs 60 crore,” the official stated.
Co-petitioner and former councillor Rajendra Tyagi remarked, “Although the court ruled in favor of GMC, we are considering other legal avenues.”
Mayor Sunita Dayal stated that the public’s frustration was understandable, noting temporary relief measures she implemented. “The residents’ opposition was completely justified. Therefore, I extended the rebate on property taxes for four consecutive months. Now, following the court’s ruling, the matter is resolved,” she added.
