THE HONOURABLE SRI JUSTICE B. VIJAYSEN REDDY WRIT PETITION No.2532 OF 2020 ORDER : (ORAL)

This writ petition is filed by the petitioners seeking to declare the action of respondent Nos.2 and 3 in uploading the enhanced property tax in the website of the Greater Hyderabad Municipal Corporation in respect of the property bearing D.No.1-3-1029/1030, Kavadiguda, Lower Tank Bund, Hyderabad, (PTIN No.1090101680), without issuing any notice to the petitioners and demanding them to pay enhanced property tax under the threat of seizure of the property in violation of the provisions of the Greater Hyderabad Municipal Corporation Act

1955 (for short ‘GHMC Act’), as being illegal and arbitrary.

2. Heard Mr. Akula Manoj Kumar, learned counsel, representing Mr. Sreenivasa Rao Velivela, learned counsel for the petitioners, and Mr. G. Madhusudhan Reddy, learned standing counsel for the Greater Hyderabad Municipal Corporation (GHMC) appearing for respondent Nos.2 and 3, and perused the material on record.

3. The petitioners claim to be the owner of the property bearing D.No.1-3-1029/1030 admeasuring 817 square yards situated at Kavadiguda, Lower Tank Bund, Hyderabad (PTI No.1090101680). It is submitted that tin shed was constructed in the subject property which is more than thirty-five (35) years old. The name of the petitioners was mutated in the GHMC records in File No.1764/TC3/02 dated 09.12.2003 and property tax was enhanced to Rs.7000/- per annum from Rs.827/-, which was regularly paid by them.

4. It is submitted that in the year 2017, the petitioners made repairs to the tin shed constructed in the subject property. During the repairs, the petitioners were issued notice dated 13.02.2017 by the GHMC for which the petitioners have submitted their reply. As and when demand notice was issued the property tax was paid by the petitioners. While things stood thus, in the month of February 2020, the Bill Collector from the office of respondent No.3 came to the subject property and demanded them to pay Rs.6,50,669/- towards property tax. When they enquired, it was informed to them by the GHMC authorities that the property tax has been enhanced. Later, when the petitioners checked the official website of the GHMC, they were surprised to know that the property tax of the subject property was enhanced to Rs.91,234/- for the year 2017-18 (half-year). The petitioners were directed to pay property tax of Rs.1,82,468/- per annum.

5. It is submitted that the GHMC was bound to issue notice under Section 220(2) of the GHMC Act, if revision of the property tax has to be made. Respondent authorities have not complied with the procedure contemplated under Sections 222 and 223 of the GHMC Act. As they were threatened of seizure of the subject property, the petitioners are constrained to approach this Court.

6. Learned standing counsel for the GHMC, appearing for respondent Nos.2 and 3, filed counter affidavit wherein it is submitted that initially the subject property of the petitioners was used for residential purpose. Later, the petitioners started commercial activities in the subject property by converting it into a convention centre. The property tax which was fixed as Rs.7,000/- per annum was several years back when the property was used for residential purpose. After coming to know that the subject property was used for commercial purpose, it was inspected. It was found that the petitioners have displayed advertisement board in their property as R-Convention Function Hall and several marriages, cultural programs, exhibitions etc. are being held in the convention centre.

7. In the counter affidavit, it is further submitted that as the property of the petitioners was inspected and the property tax was enhanced, they approached this Court making false averments. The property tax for the commercial structures made by the petitioners was assessed at Rs.87,716/- apart from Library Cess of Rs.7,018/-. As the petitioners have made unauthorized construction without obta