G.R. Dt. 26th September, 2023 – Department of Urban Development – Sub- Property Tax Exemption for Dharavi Redevelopment Project
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Grant of Property Tax Exemption for Residential Flats/Transit Camps/Open Lands and Construction in progress in Dharavi Redevelopment Project
Government of Maharashtra
Department of Urban Development
Government Resolution No:BMC-2523/Pra.Kra.685/NaVi-21
Mantralaya, Mumbai-400 032
Dated 26.09.2023
Preface:-
Government Resolution in the Department of Housing Dt. 05.11.2018 was issued vis-à-vis consolidated Redevelopment of Sectors 1 to 5 in Dharavi Redevelopment Project thorough the means of Special Purpose Vehicle (SPV) and grant of special powers therefor. Furthermore, Government Resolution Dated 28.09.2022 was issued for the implementation of Dharavi Redevelopment Project under the auspices of Special Purpose Vehicle thorough a Revised Global Tender Process enabling transfer of Railway land on the stipulated Terms and Conditions, as well as grant of additional concessions for the project.
2. Under Paragraph No.4(b) and 4(c) of the Government Resolution Dt.05.11.2018, following decisions were taken
4(b) The concessional property tax valid for the limited period in respect of slum rehabilitation and Urban Renewal Component under the Municipal Corporation for Greater Mumbai (Under Section 144B and 144D of the Mumbai Municipal Corporation Act, 1888) should be extended to flats in Dharavi Redevelopment Project Areas under Regulation 33(9)(A) and Regulation 33(10)(A) appended to Regulation 33 of the Development Control Regulation for Greater Mumbai, irrespective of the size of carpet area.
4(c) Property Tax should not be charged for Transit Camps in Dharavi and various locations in Mumbai Metropolitan Region, as well as Transit Camps constructed by the Special Purpose Vehicle, open spaces and construction in progress. Such types of absolute Property Tax Amnesty shall be available for a period of 7 years from the date of execution of Agreement in respect of Special Purpose Vehicle. After 7 years, 50% tax Amnesty should be granted for a limited period up to completion of the project.
In view of the provisions contained in the aforesaid Government Resolution, and having regard to the provisions of various sections of the Mumbai Municipal Corporation Act, 1888, the Government contemplated the matter of granting exemptions in Property Tax, concessional rates, as well as absolute Property Tax Amnesty. Accordingly, the Government has resolved as hereunder:-
Government Resolution:-
The Government has resolved to grant following exemptions in Property Tax for the transit camps, residential tenements, open lands and constructions in progress under the Dharavi Redevelopment Project.
1] Since absolute Property Tax Amnesty has been granted under Maharashtra Act No. 25, Dt. 21st March, 2022, for the property comprising residential flats/tenements having carpet area of 46.45 Sq. Mt. (500 Sq. Feet) or less from the effective date of 1st January, 2022, such provision would be applicable to residential flats/tenements generated from the Dharavi Redevelopment Project, with area less than 500 Sq. Feet.
2] Property Tax would not be levied on flats/residential properties generated from Dharavi Redevelopment Project, having carpet area less than 500 Square Feet.
3] The Mumbai Municipal Corporation Act does not contain a provision for the grant of concession in Property Tax for commercial tenements/establishments. Hence, Property Tax would be levied on the use by commercial tenements/establishments.
4] The Act does not contain a provision for the grant of exemption in Property Tax for the flats in Dharavi Redevelopment Project with area in excess of 500 Square Feet. Nevertheless, under Sections 144B and 144D of the Mumbai Municipal Corporation Act, 1888 Property Tax can be levied on such flats at reduced/concessional rates. Accordingly, the reduced/concessional rates of Property Tax shall be as hereunder:-
| I | 20% Tax Rate for First 10 Years |
| II | 50% Tax Rate for the Next 5 Years |
| III | 80% Tax Rate for the Subsequent 5 Years |
However, after 20 years, the full amount of Tax will have to be paid/payable at the prevailing Rate (100%).
5] As per Point No. 9(6) of the Government Resolution dt. 28.09.2022 in the Department of Housing, the aforesaid provisions pertaining to Property Tax would be applicable to tenanted flats, on the same footing as the flats in Slum Rehabilitation and Urban Renewal Component.
6] Since absolute Tax Amnesty has been granted under the Maharashtra Act No. 25, Dt. 21st March, 2022, for the properties comprising residential flats/tenements with carpet area equal to or less than 46.45 Sq. Mt (500 Sq. Feet), from the effective date of 1st January, 2022, no Property Tax would be levied on the Transit Camps at Dharavi or at various locations in the Mumbai Metropolitan Region or the Transit Camps constructed by the Special Purpose Vehicle, having carpet area of less than 500 Square feet.
7] Under Section 144E of the Mumbai Municipal Corporation Act, 1888 reduced/concessional property tax rate of 10% per annum shall be levied on open lands for a period of 7 years from the date of agreement. For the limited period after such 7 years and until completion of construction, Property Tax would be levied at the rate of 50%.
8] Property Tax is levied on the issue of Occupation Certificate following completion of floors of the building itself, or on receiving actual occupation or receiving possession of flats. Hence, Property Tax should not be levied on the construction in progress.
This Government Resolution has been issued with the concurrence of the Department of Housing.
This Government Resolution has been made available on the website of the Government of Maharashtra viz. www.maharashtra.gov.in and its Computer Code Number is 202309261222334925. This Government Resolution has been attested and issued under Digital Signature.
By the order and in the name of the Governor of Maharashtra,
SHANKAR TRYAMBAK JADHAV –Digital Signature
[Shankar Jadhav]
Deputy Secretary, Government of Maharashtra
Copy:-
1] The Secretary to the Hon’ble Governor,
2] The Additional Chief Secretary and Secretary to the Hon’ble Chief Minister,
3] Hon’ble Chairperson, Legislative Council/Hon’ble Speaker, the Legislative Assembly,
4] Hon’ble Leader of Opposition in the Legislative Council/Hon’ble Leader of Opposition in the Legislative Assembly,
5] All Hon’ble Members of the Legislative Assembly and Legislative Council,
6] The Joint Secretary to the Hon’ble Chief Secretary,
7] The Accountant General (Accounts and Entitlement/Audit), Maharashtra-1, Mumbai,
8] The Accountant General (Accounts and Entitlement/Audit), Maharashtra-2, Nagpur,
9] Hon’ble Advocate General, High Court of Bombay, Mumbai,
10] All Additional Chief Secretaries/Principal Secretaries/Secretaries to the Government,
11] All Municipal Commissioners in the Mumbai Metropolitan Region,
12] The Commissioner, the Mumbai Municipal Corporation for Greater Mumbai, Mumbai
13] The Metropolitan Commissioner, Mumbai Metropolitan Region Development Authority, Bandra (East), Mumbai,
14] The Vice-President and Chief Executive Officer, the Maharashtra Housing and Area Development Authority, Griha Nirman Bhawan, Mumbai-51,
15] The Chief Executive Officer, Slum Rehabilitation Authority, Mumbai,
16] The Chief Executive Officer-cum-Special Duty Officer, Dharavi Redevelopment Project, Griha Nirman Bhawan, Bandra (East), Mumbai-51,
17] District Collectors, Mumbai City/Mumbai Suburban District,
18] Additional Collectors (Encroachment/Eviction), Mumbai City/Western Suburbs/Eastern Suburbs,
19] Chief Officers of Mumbai Housing and Area Development Board, Griha Nirman Bhawan, Bandra (East), Mumbai/Konkan Boards/S.I. Board/MBRR Board/Pune Board/Nashik Board/Auragabad Board/Nagpur Board/Amravati Board,
20] All Joint Secretaries/Deputy Secretaries/Under Secretaries/Section Officers in the Department of Urban Development,
21] Select File (UD-21).
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[Text Translated by Adv. Prakash Manohar Chalke
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