The main legal point established in the judgment is that the imposition of parking charges must have a quid pro quo and be co-related to a specific service, and legitimate ends must be achieved through legitimate means, i.e., appropriate legislation or amendment to existing legislation.

S. RAVINDRA BHAT, J.

( 1 ) THE petitioner, a senior counsel practising in this court, has questioned the levy and recovery of amounts by the Municipal Corporation of delhi (MCD) the respondent in these proceedings, towards parking charges.

( 2 ) IT is claimed that the petitioner purchased a "getz" car, manufactured by the second respondent. When he sought its registration, an amount of Rs. 4000/- was recovered on the footing that it was payable on account of "mcd parking charges". The recovery has been impugned as unauthorized, and impermissible in law. The petitioner avers that his vehicle is parked within his premises, and whenever he parks it outside, on MCD land, parking charges, as per policy of the MCD, are paid, for the duration of the service rendered. Therefore, it is submitted that there is no occasion to extract such an amount as "parking charges" payable to the MCD, at the stage of purchase of the car. It is also claimed that there is no corresponding service rendered by the MCD, and for every instance of parking on its land, MCD levies parking charges separately.

( 3 ) IN its counter affidavit, the MCD justified the levy of the parking charges, on the basis of a resolution (No 216) dated 12-7-2004 of the Standing committee, that parking charges ought to be recovered, inter alia, from classes or categories of vehicles registered in Delhi. The MCD has averred that such charges are necessary to create a fund for construction of modern parking facilities, as required by the directions of this court and the Supreme Court, with the aim of de-congesting public places, and bringing about orderliness in parking in the city. Provisions of Section 43 and 108 have been relied upon to say that the charges are leviable as a part of the discretionary duties of the mcd, and for purposes of creation of a Special Fund.

( 4 ) THE petitioner urged that the impugned charges amount to taxation without authority of law. It was submitted that the revenues of the MCD, whether through rates or through taxes, are as prescribed in the specific provisions of the Delhi Municipal Corporation Act, 1957. The subject matter of taxation, or levy of fees, are outlined in Section 113 of the Act. The specific head of taxes on vehicles are enumerated in Section 113, and co-related with the Third schedule. Outside of the said provisions, without amending the Act or the rules, it was not permissible to the MCD to levy parking charges.

( 5 ) IT was submitted that the obligatory functions of the MCD did not include regulation of parking spaces, and therefore, it could not even be urged that the MCD was empowered, in exercise of its incidental powers, to levy one time parking charges, and annual charges, as was sought to be done. It was also submitted that if the levy was to be supported on the basis of its being a fee for services rendered, then too, it was beyond jurisdiction, because on each occasion when a passenger or owner of vehicle parks his vehicle on MCD land, separate charges or fees are recovered, on the basis of policies, through MCD, or its agents. Hence, the parking fee of Rs. 4000/- levied at the stage of purchase of vehicle amounted to extraction of a tax, without authority of law.

( 6 ) MR. Raj Birbal, learned senior counsel for the MCD, submitted that the levy of parking charges was justified, because huge funds were required for construction of multi-level parking facilities to augment the infrastructure in the city. It was submitted that as per Special Resolution, the Corporation, after taking into account the recommendations of the Standing Committee, decided, in compliance with the directions of courts to levy parking charges. These charges were justified, having regard to Section 43 (w) which empowered mcd to construct and maintain garages, sheds and stands for vehicles and cattle biers. Counsel also submitted that the creation of adequate parking amenities constituted an essential element of modern municipal functions.

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