DDA moves HC against MCD's demand notice of Rs 530 crore

The Delhi Development Authority (DDA) has approached the Delhi High Court against Municipal Corporation's demand notice seeking payment of property tax around Rs 530 crore on various nazul lands in the capital.
Nazul lands are properties belonging to the Union government and entrusted for the purpose of development.
A division bench of justices B D Ahmed and Siddharth Mridul, before whom the matter was mentioned, posted it for hearing tomorrow.
"List the matter for hearing tomorrow," the bench said while hearing DDA's plea, filed through advocate Giriraj Subramanium.
DDA has claimed that a demand notice of around Rs 530 crore was sent to it on October 20 seeking property tax on various nazul properties given to it for development.

The petition has said that DDA holds the nazul properties as custodian on behalf of the Centre and there is no transfer of ownership of lands to it, thus, by the operation of Article 285 of the Constitution these properties are exempted from taxation by states.

"DDA which holds the nazul properties as an agent of the government of India is exempted from payment of property tax imposed by the municipal corporations by the operation of Article 285 of the Constitution," the plea said.
DDA has sought a direction to grant an exparte ad interim injunction and operation of the various demand notices, assessment orders and distress warrants issued by the SDMC and other municipal corporations.

The plea has alleged that in complete ignorance of the constitutional and statutory provisions the respondent municipal corporations have been issuing demand notices and distress warrants against the authority seeking payment of property tax on the various properties.
It contends that "the claim of the municipal corporation is based on the misconception that the DDA is the owner of the nazul properties".