Jagdish Prasad Agarwal v. The State of Telangana

Petition under Article 226 of the Constitution of lndia praying that in the circumstances stated in the affidavit filed therewith, the High Court may be pleased to issue a Writ of Mandamus declaring the action of Respondent Nos. 2 to 4 in considering petitioner's representations dated 13.09.2024 and 15.O7.2025 without rectifying the erroneous assessment of property tax relating to his shops i.e., (a) removal of tax on vacant shop No, 5-B-599/D, (b) proper re-measurement and market value fixation of shop Nos. 5-B-599/Dl2 to 4 at RATAN MALL SHOPPING COMPLEX, Chadarghat High School Lane, Abids, Hyderabad, and (c) waiver of penalty and interest, as illegal, arbitrary, violative of Articles 14,265, and 300-4 of the Constitution of lndia and contrary to the GHMC Act, 1955. and consequently direct the Respondents to rectify the property tax assessment and forbear from taking any coercive action against petitionerrs said shops, in the interest of justice IA NO: 10F 2025 Petition under section 151 cpc praying that in the c rcumstances stated in the affidavit fired in support of the petition, the High court may be preased to direct the Respondents to forthwith remove the tax on vacart shop No. 5-g-Sgg/D, conduct re-measurement and market varue fixation of shop \os. 5-g-5gg/D/2 to 4, and not to initiate any coercive action against the petitioner,s above shops pending disposal of the above writ petition. Counsel for the petitioner : SRI KATIKA RAVINDER REDD./ Counsel forthe Respondent No.1 : Gp FOR MCPL ADMN LTRBAN DEV Counsel for Respondents No.2TO4 : SRt M.ARUN KUMAR, SC FOR GHMC The Court made the following: ORDER :r, - HONOURABLE SRIJUSTICE B. VIJAYSEN REDDY WRIT PETITION No.28479 OF 2025 ORDER:(ORAL) This writ petition is filed seeking a Mandamus to declare the action of respondent Nos.2 to 4 in not considering the petitioner's representations dated 13.09.2024 and 15.07.2025, for rectification of erroneous assessment of property tax relating to his shops i.e., (a) for removal of tax on vacant shop No.5-8-599/D, (b) for proper re- measurement and market value fixation of shop Nos. 5-B-599/Dt2 to 4 at'Ratan Mall Shopping Complex' situated at Chadarghat High Schol Lane, Abids, Hyderabad, and (c) for waiver of penalty and interest, as illegal, arbitrary and violative of Articles 14, 265 and 300-4 of the Constitution of lndia and the provisions of the Greater Hyderabad Municipal Corporation Act, 1955 (for short, 'GHMC Act').

2. Petitioner claims to be the owner and possessor of eight mulgies bearing Unit Nos. FF-1 , FF-2, FF-39 to FF-44 (Municipal Nos. 5-8-599/D & 5-8-599/D/1 to 5-8-599/D/7) on the first floor, admeasuring 3370 square feet (including common area and parking @ 20%) with

121.78 square yards undivided share of land out of 2744 square yards, in the commercial complex by name 'Ratan Mall Shopping Complex' situated at Chadarghat High School Lane, Abids, Hyderabad. The 2 BVR,J W.P No.28479 2025 name of the petitioner was mutated in municipal reoords and he had paid property tax regularly upto 2015. That withcut following the provisions of the GHMC Act, the GHMC authorities have arbitrarily calculated the property tax for four shops by inflatinr; the tax manifold without any basis.

3. Heard Mr. Katika Ravinder Reddy, learnetJ counsel for the petitioner, and Mr. Midde Arun Kumar, learned Sta rding Counsel for GHMC, appearing for respondent Nos.2 to 4, and perused the material available on record.

4. Learned counsel for the petitioner submitted that the actual built up area of Shop No.5-8-599/D/4 is 265 square feet, l>ut the GHMC has wrongly recorded the area as 1 1 55 square feet, t-rus there is error committed by the GHMC in taking measurements ol the property. The action of the respondent authority is contrary to S ection 21 3 of the GHMC Act, which mandates that the GHMC l;hall maintain an Assessment Book containing accurate particulars of assessed property showing its extent, use and rental value. lt is furtrer submitted that shop bearing No.5-8-599/D was closed and is lying vacant and as per Section 220 (2) of the GHMC Act, remission of tax is permissible whenever property is vacant or unproductive. The respondent t I I I i :- -.F-i;rl .:,/ '-{ J BV&J w.P.No.28479 2025 authorities have arbitrarily imposed penalty and interest on the so- called arrears without proper assessment of the subject shops. ln case of enhancement of property tax, the respondent authorities are bound to issue prior notice under Section 220 (1) of the GHMC Act and give an opportunity of hearing to the assessee. Moreover, under Sections 197 and 198 of the GHMC Act, the property tax has to be decided on rational yardsticks, such as on the basis of annual rental value or unit area value, which is not done in the instant case. Thus, the action of the respondent authorities is arbitrary and violative of Article 3004 of the Constitution of lndia.

5. Learned Standing Counsel for respondent Nos.2 to 4 furnished copy of parawise remarks. Learned Standing Counsel submitted that during the property tax collection, special drive official of GHMC visited the property bearing H.Nos.5-8-5991D12 to 4 and it was noticed that there are huge property tax dues in respect of the said door numbers, the details of which are extracted hereunder: "H.No.5-8-599/D/2, PTIN-1080512075, Tax Due till date - Rs.3,55,874. H.No.5-8-599/D/3, PTIN-1080512076, Tax Due till date- Rs.3,75,414. H.No.5-8-599/D/4, PTIN-1080512077, Tax Due till date - Rs.'15,87,268." 4 I]VRJ W.P.No.28479 2025 It is stated that from the year 2012-13 lo 2025-26 i e., for about 13 years, the petitioner did not pay any property tax He defaulted in paying current tax and arrears of tax. Several times, demand notices were issued to the petitioner, but he did not respond. As the petitioner was due to pay huge property tax, the Tax lnspector visited the property of the petitioner and informed the petitioner about the arrears of property tax. The petitioner had been trying to avoid service of demand notices issued to him under Section 266 of the GHMC Act. The GHMC issued notice under Section 213 of the GHMC Act to the petitioner on 1 1.09.2025 directing him to submit relevrrnt documents for rectification and reassessment of property tax, but he has failed to submit the documents. The respondent Corporation has followed the provisions of the GHMC Act. That without any genuine grievance, the petitioner has approached this Court with unclertn hands. The petitioner has to pay outstanding dues of Rs.21j,1g,556/- to the respondent Corporation.

6. Learned Standing Counsel also furnished copies of three receipts signed on 11.Og.2OZS by Mr. Jagdish prasad (petitioner) acknowledging the receipt of letter along with profot-ma for furnishing the information under Section 213 of the GHMC Act. The learned Standing Counsel also furnished copy of the property tax statements of ,,, ,/ i r,],-:..r . 5 BV&J W.P.No-28479 2025 the petitioner from the yeat 2012-2013 to 2025-2025, which show that in respect of Door No.5-8-599/D/2, the petitioner has to pay Rs.3,55,8741 (Rs.1,43,916/- towards arrears of tax, Rs.1'99,907/- towards arrears of interest, Rs.'l 1,700/- towards current tax and Rs.351/- towards current interest); in respect of Door No.5-8-599/Dl3' the petitioner has to pay Rs.3,75,414l- (Rs.1,51,384/- towards arrears of tax, Rs.2,1 1,6541- towards arrears of interest, Rs.12,016/- towards current tax and Rs.360/- towards current interest); and in respect of Door No.5-8-599/D/4, the petitioner has to pay Rs.15,87,268/- (Rs.6,37,662/- towards arrears of tax, Rs-8,98,7021- towards arrears of interest, Rs.49,422t- towards current tax and Rs.1,4821 towards current interest). Thus, total amount of Rs.23,18,556/- is liable to be paid by the petitioner.

7. Taking note of the submissions of the learned counsel for the petitioner that measurements of the property are not properly taken and there is abnormal increase in the property tax and further representations of the petitioner are not being considered, the writ petition is disposed of directing the petitioner to deposit a sum of Rs.6,00,0001 (Rupees Six Lakhs only) i.e.' Rs.2,00,000/- for each property, within a period of three (3) days from today. The amount so deposited by the petitioner shall be adjusted subject to outcome of the , I \ 6 BVR.J W.P.No.284 79 2025 representations dated 13.09.2024 and 15.07.2025 submitted by the petitioner. The representations shall be considererd by respondent No.4 - Deputy Commissioner, Goshamahal Circlt: No.14, GHMC, Hyderabad, by giving an opportunity of hearing to the pelitioner, and orders shall be passed in accordance with law, within a period of four (4) weeks from the date of receipt of a copy of this order. The petitioner is granted liberty to make a request to respondent No.4 to authorize the concerned officials to make proper mei:lsurements of the subject property. No order as to costs. As a sequel thereto, miscellaneous applicatiorrs, if any, pending in the writ petition stand closed. //TRUE COPY// SD/.MOHD.ISMAIL DEPUTY REGISTRAR G- SECTION OFFICER To, 1 2 3 4 5 6 7 8 The Principal Secretary (MAUD), Secretariat, State of I elangana, Hyderabad The Greater Hyderabad Municipal Corporation (GHIVC,, rep. by its Commissioner, Tank Bund Road, Hyderabad. The Zonal Commissioner, GHMC, Central Zone, Hyderabad. The Deputy Commissioner, Goshamahal Circle No.14, GHMC, Hyderabad. One CC to SRI KATIKA RAVINDER REDDY, Advocak, tOPUCl Two CCs to GP FOR TVCPL ADMN URBAN DEV, Higl- Court for the State of Telangana. [OUTI One CC to SRI IV ARUN KUMAR, SC FOR GHMC. [OrUCl Two CD Copies. ry/ BSK HIGH COURT DATED:2210912025 CC TODAY :\_ .$ -e )i t ") -.{. ..:. ,,: ' ,, tr:it,-l ,i. '-; ..! t::.j I I ri-- iif ; 'L! l). \.:,.1- ORDER WP.No.28479 ot 2025 DISPOSING OF THE WRIT PETITION WITHOUT COSTS 1 q U)