Delhi HC: MCD’s higher luxury hotel tax not arbitrary
NEW DELHI: The Delhi High Court has stated that the increase in property tax rates for luxury hotels imposed by the Municipal Corporation of Delhi cannot be considered “arbitrary or capricious,” especially when viewed in the context of their target clientele’s economic background. The court explained that luxury hotels actively pursue star ratings, positioning themselves within a niche aimed at affluent customers while providing premium experiences at high prices. Justice Purushaindra Kumar Kaurav, delivering the judgment on September 12 (published on the court’s website on September 16), noted, “The legislative intent behind the higher property tax rates for these establishments…