GP has right to collect tax from properties in Cidco notified areas: HC

Chhatrapati Sambhajinagar:

Cidco has been declared as a special planning authority for developing 17 villages (including Teesgaon) surrounding the city and industrial estates.

Many years ago, the Cidco administration gave a green signal to hand over South City (in Teesgaon) to Teesgaon Grampanchayat. Accordingly, the local self-governing body provided all the facilities in the South City then also there was opposition from the residents to the collection of tax by it. Hence a petition was filed in the Aurangabad Bench of the Bombay High Court. When the case came up for hearing the bench gave the verdict saying that Grampanchayat has the authority to collect the tax.

It may be noted that the developer Unitech Limited developed South City and handed it over to the gram panchayat for providing basic amenities in 2003. Cidco had also submitted its no-objection in the handing-over process. Accordingly, the gram panchayat was providing the amenities and collecting the tax from the property-holders, but a few South City residents Ramesh Pardeshi, Shrikant Bhavthankar and Vishnu Ambalkar filed a petition in the High Court stating that gram panchayat does not have right to collect the tax. They also requested to direct the Cidco administration to take action against the developer for failing to develop the site in totality as per the agreement.

Adv Chandrakant Thorat, representing the gram panchayat, brought to the notice of the High Court that gram panchayats in CIDCO-notified areas have full powers to levy and collect taxes as per Section 124, 129 of the Maharashtra Grampanchayat Act.

Meanwhile, Cidco would be issuing an order in this regard in four months. The court disposes of the petition saying that it is the responsibility of the Cidco administration to provide basic amenities and facilities. Adv Sachin Deshmukh pleaded on behalf of the Cidco administration and Adv Pawan Lakhotiya represented the state government.

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The reference to the verdict given by the Bombay High Court in the case of Bima Office Premises Co-operative Society and others versus Karanboli Grampanchayat to justify that Grampanchayat can collect the tax. The court also ordered the Cidco administration to serve legal notice to Unitech Limited for not fulfilling the agreement relating to the development.