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2025 Supreme(Online)(Del) 7066

IN THE HIGH COURT OF DELHI AT NEW DELHI
PURUSHAINDRA KUMAR KAURAV, J
M/S EROS RESORTS & HOTEL LTD – Appellant
Versus
MUNICIPAL CORPORATION OF DELHI – Respondent


Advocates:
For the Appellants/Petitioners: Mr. Harish Malhotra, Sr. Adv., Mr. Rajender Agarwal, Mr. Anoop Kumar, Mr. Sidharth Aggarwal, Mr. Ravi Kant Chadha, Ms. Mansi Chadha, Mr. Atul Nigam, Ms. Tanvi Nigam, Ms. Lubhanshi Tanwar, Mr. Gaurav Sarin, Ms.Charul Sarin, Mr. Rajiv Nayar, Mr. Aman Ahluwalia, Ms. Ruby Singh Auja, Mr. Devang Kumar, Mr. Jappanpreet Hora, Mr. Tribhuvan Narain Singh, Dr. Lalit Bhasin, Ms. Nina Gupta, Mr. Ajay Pratap Singh, Ms. Vishali Sivagnanam, Mr. B. B. Gupta, Sr. Adv., Mr. Achal Gupta, Mr. Snehil Srivastava, Mr. Karan, Mr. Akhil Pal Chhabra, Ms. Ritu Chhabra, Ms. Udisha Sahay, Mr. Badal Dayal, Mr. Surender Wankhede, Ms. Nishi Chauhan, Ms. Rachna Dayal, Mr. Akhilesh Singh, Mr. Varun Jain
For the Respondents: Mr. Sanjay Poddar, Sr. Adv., Ms. Sunieta Ojha, Mr. Govind Kumar, Mr. Apurv Kumar, Ms. Anamika, Mr. Rosy, Ms. Vasudha Priyansha, Mr. Anirudh Bakhru, Ms. Archita Mahlawat, Mr. Ayush Puri, Mr. Mohd. Umar, Mr. Sultan Jafri, Ms. Madhu Tewatia, Mr. Adhirath Singh, Ms. Saroj Bidawat, Ms. Arunima Dwivedi, Mr. Nipun Saxena, Ms. Aadya Pandey, Ms. Deepali Dabas, Mr. Siddharth Panda, Mr. Anil Pandey, Mr. Tushar Sannnu, Mr. Devang Kumar, Mr. Jappanpreet Hora, Mr. Tribhuvan Narain Singh, Ms. Puja S. Kalra, Mr. Vipin Tokas, Ms. Bharathi Raju, Mrs. Anjana Gosain, Ms. Shreya Manjari, Ms. Avni Singh.

JUDGMENT

The instant batch of writ petitions under Article 226 of the Constitution of India, 1950 (hereinafter referred to as „the Constitution‟) have been filed challenging the recommendations made by the Municipal Valuation Committee (hereinafter referred to as „MVC) under Section 116 of the Delhi Municipal Corporation Act, 1957 (hereinafter referred to as „DMC Act‟), implemented by the Municipal Corporation of Delhi (hereinafter referred to as „the MCD‟) for levying property tax on the petitioner-hotels. The petitioners have sought the quashing of the user multiplier factor of 10 and the imposition of the rate of tax as 20% as against 10% before.

2. The majority of the writ petitions concern hotels of the erstwhile 5- star category. The rating of 5-star has been allegedly reclassified as 4-star w.e.f. 7.02.2022.

3. In the year 2004, the Delhi Municipal Corporation (Amendment Act), 2003 (hereinafter referred to as „Amendment Act of 2003‟) came into force which, inter alia, brought about a change in the property tax regime to the extent of replacing the then existing „Rateable Value‟ (RV) system with „Unit Area Method‟ (UAM). After the enforcement of UAM based system, the property

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