Chapter VI POWERS OF TAXATION

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25. Power to levy a cess on buildings and lands.

Statutory text

(1) The State Government may, upon a request received from the Metropolitan Authority by notification in the Official Gazette, levy a cess on buildings and lands in 1[the Mumbai Metropolitan Region] or any part thereof, at such rate not exceeding five per centum, as may be determined by the State Government, of the ratable value of the property : Provided that all buildings or parts thereof, which are erected before the 1st day of April 1960, and the lands on which they are erected, shall be exempt from the payment of the cess.
(2) Such cess may be levied at different rates for different areas and for different classes of properties.
(3) The cess shall be collected by the local authority within whose areas the properties are situated as if the cess were a property tax levied by it under the law governing that local authority and shall first be credited to the Consolidated Fund of the State, after deducting such portion thereof as may be prescribed as collection charges.
(4) The State Government shall after the appropriation made by the State Legislature by law in this behalf, pay to the Authority, from time to time, from out of the proceeds of the cess sums equivalent to the net amount of the cess credited to the Consolidated Fund of the State for being utilised by the Authority for the purposes of this Act.
(5) Notwithstanding anything contained in the Bombay Rents, Hotel and Lodging House Rates Control Act, 1947 (Bom LVII of 1947), a landlord shall not, in respect of any premises situated in the Metropolitan Region, be entitled to make any increase in the rent of the said premises on account of the payment by him of the cess levied under this section.

Chapter VI POWERS OF TAXATION

26. Power of Metropolitan Authority to levy betterment charges.

Statutory text

(1) Where, in the opinion of the Metropolitan Authority as a consequence of any development project or scheme having been executed by the Metropolitan Authority in any area, the value of any land in that area has increased or will increase, the Metropolitan Authority shall be entitled to levy upon the owner of the land or any person having an interest therein, a betterment charge in respect of the increase in value of the land resulting from the execution of the development project or scheme.
(2) Such betterment charge shall be an amount not exceeding one-half of the amount by which the value of the land on the completion of the execution of the development project or scheme, estimated as if the land were clear of buildings, exceeds the value of the land immediately before such execution estimated in like manner : Provided that, in levying betterment charge on any land, the Metropolitan Authority shall have regard to the extent and nature of benefit accruing to the land from the development project or scheme and such other factors as may be laid down by rules made in this behalf.
(3) No betterment contribution shall be payable by the Government, the Authority or other local authority in respect of any land which is the property of the Government, the Authority or other local authority or by any public institution in respect of any land belonging to such institution. if, and so long as, such land is used for a public charitable or religious purpose.

Chapter VI POWERS OF TAXATION

27. Assessment of betterment charge by the Metropolitan Authority.

Statutory text

(1) When it appears to the Metropolitan Authority that any particular development project or scheme is sufficiently advanced to enable the amount of the betterment charge to be determined, the Metropolitan Authority may, by an order made in this behalf, declare that for the purpose of determining the betterment charge the execution of the development project or scheme shall be deemed to have been completed and shall thereupon give notice in writing to the owner of the land or any person having an interest therein that the Metropolitan Authority proposes to assess the amount of the betterment charge in respect of the land under the last preceding section.
(2) The Metropolitan Authority shall then assess the amount of betterment charge payable by the person concerned after giving such person a reasonable opportunity to be heard and such person shall, within three months from the date of receipt of the notice in writing of such assessment from the Metropolitan Authority, inform the Metropolitan Authority by a declaration in writing that he accepts the assessment or dissents from it.
(3) When the assessment proposed by the Metropolitan Authority is accepted by the person concerned within the period specified in sub-section (2) such assessment shall be final.
(4) If the person concerned dissents from the assessment or fails to give the Metropolitan Authority the information required by sub-section (2) within the period specified therein, the matter shall be determined by arbitrators in the manner provided in the next following section.

Chapter VI POWERS OF TAXATION

28. Settlement of betterment charge by arbitrators.

Statutory text

(1) For the determination of the matter referred to in sub-section (4) of the last preceding section, the State Government shall appoint three arbitrators of whom one shall be a City Civil Court Judge or District Judge or who has been such judge and two others shall possess such technical qualifications as may be prescribed.
(2) The arbitrators shall follow such procedure as may be prescribed.
(3) The arbitrators shall, for purpose of determining any matter referred to them have the same powers as are vested in a Civil Court under the Code of Civil Procedure, 1908 (V of 1908), when trying a suit, in respect of the following matters, namely :-
- (a) summoning and enforcing the attendance of any person and examining him on oath ;
- (b) requiring the discovery and production of any document ;
- (c) receiving evidence on affidavits ;
- (d) requisitioning any public record from any Court or office ;
- (e) issuing commissions for examination of witnesses.
(4) In the event of any difference of opinion among the arbitrators, the decision of the majority shall prevail and that decision shall be the award of the arbitrators.
(5) If any arbitrator dies, resigns or is removed under sub-section (6) or refuses or neglects, in the opinion of the State Government, to perform his duties, or becomes incapable of performing the same, then the State Government shall forthwith appoint another fit person to take the place of such arbitrator.
(6) If the State Government is satisfied after such inquiry as it thinks fit-
- (a) that an arbitrator has misconducted himself, the State Government may remove him from his office;
- (b) that the award of the arbitrators has been improperly procured or that any arbitrator has misconducted himself in connection with such award, the State Government may set aside the award.
(7) An award which has not been set aside by the State Government under clause (b) of sub-section (6) shall be final and shall not be questioned in any Court.
(8) The provisions of the Arbitration Act, 1940 (X of 1940), shall not apply to arbitration under this section.

Chapter VI POWERS OF TAXATION

29. Payment of betterment charge.

Statutory text

(1) The betterment charge levied under this Act shall be payable in such number of instalments and each instalment shall be payable at such time and in such manner as may be fixed by rules.
(2) Any arrear of betterment charge shall bear interest at the prescribed rate and shall be recoverable as an arrear of land revenue.

Chapter VI POWERS OF TAXATION

30. Betterment charge a first charge on land.

Statutory text

(1) Any person liable to the payment of betterment charge may, at his option instead of making a payment thereof to the Metropolitan Authority, execute an agreement with the Authority to leave the said payment outstanding as a charge on his interest in the land, subject to the payment in perpetuity of interest at the prescribed rate, the first annual payment of such interest being made at such time and in such manner as may be fixed by the rules : Provided that, within a period of ten years from the date on which the first payment of interest is made by any person, he may, at any time, pay the betterment charge in full in a lump sum and thereupon the agreement executed by him shall stand terminated and the charge created by him on his interest in the land shall also stand released.
(2) Every payment due from any person in respect of a betterment charge and every charge referred to in sub-section (1) shall notwithstanding anything contained in any other law for the time being in force but subject to the payment of any dues of the Government, or of any local authority, be the first charge upon the interest of such person in such land.

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