Ghaziabad Property Tax Controversy Intensifies After Court Ruling
The Allahabad High Court has upheld the Ghaziabad Municipal Corporation's decision to increase property tax, setting the stage for a fierce political and legal battle. Former councillors are now exploring political avenues to reverse the move, while also keeping open the option of a Supreme Court challenge within the 90-day window.
Legal and Political Strategies Emerge
Rajendra Tyagi, a co-petitioner and former GMC councillor, confirmed plans to approach the Supreme Court but emphasized that a political resolution would be preferable. "Going to the Supreme Court would be a long-drawn-out process. We are in favour of finding a political solution in the larger interest of the people," Tyagi stated, highlighting the preference for quicker resolution through political channels.
Details of the Property Tax Revision
The controversy centers on a new property tax regime implemented from April 1 last year, which aligned tax slabs with district magistrate circle rates. This revision has resulted in:
- A three- to four-fold increase in property tax for numerous households
- Rates rising from approximately Rs 0.7 per square foot to as high as Rs 4 per square foot
- Annual tax bills increasing by roughly Rs 5,000 for a significant portion of residents
The revised structure varies according to road width:
- Properties on roads narrower than 12 metres: Rs 0.3 to Rs 1.6 per sq ft
- Properties on 12–24 metre-wide roads: Rs 0.5 to Rs 2 per sq ft
- Properties along wider roads: Rs 0.65 to Rs 2.4 per sq ft
Property tax is calculated based on annual rental value, with six lakh properties currently registered under GMC jurisdiction.
Financial Implications and Civic Justifications
Municipal officials defended the increase as essential for Ghaziabad's development. The corporation expects additional annual revenue exceeding Rs 120 crore, which officials claim will substantially bolster civic finances. In the 2025-26 financial year, GMC collected Rs 375 crore from property tax, and the additional funds are earmarked for infrastructure and development projects across the city.
Public Opposition and Political Reactions
The tax hike has triggered sustained protests from resident welfare associations, apartment owners, and traders' bodies. Despite earlier indications from the GMC Board that it would repeal the increase, the corporation continued issuing tax notices under the revised slabs, maintaining the dispute and prompting legal action.
Following the February 25 verdict, Mayor Sunita Dayal acknowledged that the ruling significantly narrowed possibilities for reversing the revised tax. "I had openly asked residents not to pay the hiked tax when the matter was before the court. Now that the order has come, we have to abide by it, even as our legal team examines its finer details," Dayal stated, noting her previous opposition to linking property tax to DM circle rates.
Residents expressed disappointment with the court's decision. Ashisk Kumar, an office bearer of Supertech Apartment RWA, described the hike as unprecedented. "We opposed it from day one. Many of us held back payments hoping the court would rule in our favour, but that has not happened," he lamented.
Political Opposition Intensifies
Political opposition has sharpened significantly. All India Congress Committee spokesperson Dolly Sharma accused the BJP-led government of unfairly targeting Ghaziabad, questioning whether the city was being treated as "an ATM for the government." Sharma claimed Ghaziabad now has the highest property tax among Uttar Pradesh's 17 municipal corporations and warned of citywide protests if the hike isn't rolled back. "The GMC Board has enough legislative power to restore taxes to pre-April 2025 levels," she asserted.
Judicial Rationale and Future Prospects
A two-judge bench of the Allahabad High Court dismissed the petition filed by former councillors, ruling that the corporation's method of fixing minimum monthly rent rates and revising property tax accordingly was legally sound. This judicial validation has strengthened the corporation's position while galvanizing opposition forces.
The situation remains fluid as multiple stakeholders weigh their options. While the municipal corporation emphasizes the developmental necessity of increased revenue, residents and political opponents continue to organize against what they perceive as an excessive financial burden. The coming weeks will likely see intensified political maneuvering and potential legal filings as all parties position themselves in this ongoing civic conflict.
