( 1 ) THE point at issue as raised by the Housing and Urban Development Corporation Limited (in short HUDCO) is; Whether HUDCO is exempt from levy of property tax on the land allotted to it by Government of India.

( 2 ) THE controversy revolves around the applicability of the provision of Section 120 (1) (c) of the Delhi Municipal Corporation Act (in short the DMC Act ). Secondly, whether HUDCO by virtue of allotment of letter/lease in its favour acquired leasehold rights in the property or is it only managing the property on behalf of the Government of India, and finally; whether the land allotted to HUDCO can be called "land capable of being built".

( 3 ) NO doubt provisions of Sections 120 (1) (a), (b) and (c) as well as the provisions of Sections 116 (4) and 119 of the DMC Act came up for interpretation in number of cases earlier, but keeping in view the facts of this case we have to see which of the sub-clauses of Sections 120 of the DMC Act are attracted in the facts of this case. And whether the properties in question are exempted under Section 119 of the Act. Before answering the points raised, lets have quick glance to the facts of this case.

( 4 ) THE facts relevant for the determination of above points are, that the Government of India allotted the land measuring 42. 6 acres to the petitioner, at Pinjrapole, Andrews Ganj, New Delhi. The allotment was subject to the terms and conditions as stipulated in Memorandum of agreement and the lease deed dated 1st November, 1990. Out of 42. 6 acres of land, an area measuring 17. 6 acres was leased out to the petitioner for being utilised for the construction of Community Centre. After the allotment of land vide lease deed dated 1st November, 1990 various letters were exchanged between the Government of India and the HUDCO. Finally a perpetual lease deed was executed between the HUDCO and the Union of India on 4th July, 1997. As per the first allotment letter dated 1st November, 1990 the area of 17. 6 acre was given on lease basis to HUDCO on its paying a token premium of rupee one and annual ground rent of Re. 1/per acre for a period of 32 years. 25. 0 acre of residential land was leased out for a period of 10 years with a further stipulation that after the expiry of this period the land along with structures to be erected by HUDCO thereon would be reverted to the Ministry of Urban Development. The land allotted for Community Centre was to be developed for Hostels, guest house facilities, conference hall, shopping centre and other community facilities. The net resources to be generated from the 17. 6 acres of land was to be utilised for construction of maximum permissible number of houses/flats on 25. 0 acres residential land. Those constructed flats were to be taken over on rent by the Government. On taking over these flats the Government was to pay a token amount of Re. 1/for the entire residential complex. The flats were to be maintained by the Government. The building and service municipal taxes etc. of those flats were to be paid by the Government. To that effect a separate tenancy agreement was to be executed between the Ministry of Urban Development and the HUDCO. Beside the above 18 acres of land was entrusted to HUDCO without payment of any fee. It was allotted for the care and maintenance as zonal green. The cost of the development and maintenance of the zonal green was to be charged by the HUDCO to the accounts of the Community Centre Project. The Government was to intimate the details of leasing arrangement in respect of the facilities developed on the Community Centre land.

( 5 ) IT has been the case of the MCD that the petitioner started raising construction on the 17. 6 acres of land with which we are concerned in October, 1990 i. e. prior to the official allotment of land vide letter dated 1st November, 1990. The petitioner after raising construction of the Community Centre on 17. 6 acres of land, sub-leased the same to the third parties. It is