JUDGMENT : (Prayer: Writ petition filed under Article 226 of the Constitution of India, for a Writ of Certiorarified Mandamus, calling for the records of first respondent relating to impugned G.O.(Ms) No.73, Municipal Administration and Water Supply (MA.IV) Department, dated 19.07.2018 and G.O.(Ms) No.76, Municipal Administration and Water Supply (MA.IV) Department, dated 26.07.2018, the consequential notification No.Na.Ka.T1/33254/2018, Na.Ka.No.3786/2017/A2 dated 15.10.2018 published in the Tuiruvannamalai District Gazette Special Bulletin No.23, dated 16.10.2018 by the 4th respondent and to quash the same and forbear the 4th respondent from demanding exorbitant tax for the period from half of 2017-18 on the basis of impugned G.O. And impugned notification.) 1. Petitioner a member of the Tamil Nadu Legislative Assembly has filed the instant Public Interest Litigation, for an appropriate Writ, Order or Direction, calling for the records of the government of Tamil Nadu, Secretary, Municipal Administration and Water Supply (MA.IV) Department, relating to G.O.(Ms) No.73, Municipal Administration and Water Supply (MA.IV) Department, dated 19.07.2018 and G.O.(Ms) No.76, Municipal Administration and Water Supply (MA.IV) Department, dated 26.07.2018, the consequential notification No.Na.Ka.T1/33254/2018, Na.Ka.No.3786/2017/A2 dated 15.10.2018 published in the Tuiruvannamalai District Gazette Special Bulletin No.23, dated 16.10.2018 by the Commissioner, Thiruvannamali Municipality, and to quash the same and further forbear the Commissioner, Thiruvannamalai Municipality, from demanding exorbitant tax for the period from half of 2017-18 on the basis of G.O.s mentioned above. 2. The petitioner has served as a Minister of Food and Agriculture, Government of Tamil Nadu, during the year 2006-2011. It is stated that the Government have revised the property tax payable in the State of Tamil Nadu. The property tax was revised by G.O.(Ms) No.73, Municipal Administration and Water Supply (MA.IV) Department, dated 19.07.2018, stating that the revision of property tax would be:- 1. Residential Buildings - Not more than 50% 2. Rented Residential Buildings - Not more than 100% 3. Non Residential Buildings - Not more than 100% 3. The petitioner states that the said G.O.(ms).No.73, was modified and G.O.(Ms) No.76, Municipal Administration and Water Supply (MA.IV) Department, dated 26.07.2018, was issued and the property tax of the rented residential buildings was reduced and it was decided that they too should not exceed more than 50% of the existing property tax. 4. The petitioner states that subsequent notifications were issued by the Commissioner, Thiruvannamalai, fixing property tax in the Municipality. 4. The petitioner states that subsequent notifications were issued by the Commissioner, Thiruvannamalai, fixing property tax in the Municipality. The petitioner states that the notification which was published in the Tiruvannamalai District Gazette Special Bulletin states that the General Property-tax Revision will be undertaken by the 4th Respondent with effect from 01.04.2018, on the basis of the Government Orders issued by 1st Respondent and Circular Na. Ka. No. 20555/2018/R1 dated 20.08.2018 issued by the 3rd Respondent framing the guidelines for General Revision of Property -tax. The petitioner states that the Gazette Notification further states that the streets in Tiruvannamalai have been divided as ‘A’ Zone, ‘B’ Zone and ‘C’ Zone, and the said classification has been advertised in Dinamalar dated 10.10.2018. The notification states that since, there was no objection a resolution was passed on 12.10.2018 by the 4th respondent council. In the said Gazette Notification, it is found that under A zone there are 278 streets, under B Zone there are 162 streets and under C zone there are 15 streets. There are 455 streets in all the three Zones put together. 5. The Gazette Notification further states that presently the residents in A Zone are paying property tax at Rs.2.00 per sq.ft.; residents in B Zone are paying property tax at the rate of Rs.1.50 per sq.ft.; and residents in C Zone are paying Rs.1.00 per sq.ft. After giving these details, the Gazette Notification further states that in so far as ‘A’ Zone is concerned, the property tax at Rs.2.00 is enhanced to Rs.3.30, the property tax at Rs.1.50 so far as ‘B’ Zone is concerned is enhanced to Rs.2.50 and so far as ‘C’ Zone is concerned, the property tax is enhanced from Re. 1.00 to Rs.1.60. 6. Petitioner states that the Gazette Notification dated 15.10.2018 has been issued on wrong factual details. The petitioner states that “For example, it is said in the said Notification that for ‘A’ Zone streets, property tax so far is collected at Rs.2.00 per sq.ft., but it does not mention in the Gazette Notification as to from which date they have been collecting Rs.2.00 per sq.ft. for a building in ‘A’ Zone. Apart from this, the so-called collection of Rs.2/- per sq.ft. for a building in ‘A’ Zone. Apart from this, the so-called collection of Rs.2/- per sq.ft. for a building in ‘A’ Zone is factually incorrect, as claimed by the 4th Respondent Municipality, for the reason, hypothetically if the extent of a building in A Zone is 100 sq.ft., then at the rate of Rs.2/- per sq.ft., the tax would come to Rs.200/-. But, unfortunately if this simple arithmetical calculation is applied to the present tax collected, not even in one case this calculation fits in, thereby the statement of the first respondent that at present Rs.2/- is collected for A Zone building; Rs.1.50 is collected for B Zone building and Rs.1/- is collected for C Zone building is false.” 7. It is submitted by the petitioner that enhancement in the Property tax is exorbitant, and has been fixed without any application of mind. It is averred that for the building bearing Door No. 119C, owned by Mrs.Usha Rani, Chengam Road 1, Tiruvannamalai, Ward No. WD-26, half yearly property tax for the 1st half of 2017-18 was assessed at Rs.465/- and for the second half of 2017-18 also it was assessed at Rs.465/- as per Assessment No. 040/026/00419, (Old Assessment No. 040/203480 Property Type: Building). When this is so, suddenly for the 2nd half of 2017-18, for the same building, the property tax is assessed at Rs.7,136/- as per Assessment No.040/026/00419 (old Assessment No.040/20480). This enhancement amounts to 1535 per cent hike. It is also submitted that this one example is enough to scrap the notification of the Tiruvannamalai Municipality as atrocious, capricious and beyond any rule of law. 8. It is stated that, as per the Notification in the Gazette, out of 455 streets under the Tiruvannamalai Municipality, 160 streets in ‘C Zone’ were upgraded to ‘B Zone’; 92 streets in Zone’ en masse upgraded to ‘A Zone’ and 22 streets in ‘C Zone’ were upgraded to ‘A Zone’. It is contended that it is not known on what basis and how this was done. It is stated that the streets which were under ‘C Zone’ with less amenities, have been entered into either ‘A Zone’ or ‘B Zone’ without any change whatsoever and the whole exercise requires to be struck down. It is contended that it is not known on what basis and how this was done. It is stated that the streets which were under ‘C Zone’ with less amenities, have been entered into either ‘A Zone’ or ‘B Zone’ without any change whatsoever and the whole exercise requires to be struck down. The petitioner therefore submits that the classification of entire Thiruvannamalai municipality in to 3 Zones under the impugned guidelines framed by 4th respondent by dividing the same as ‘A to C’ zones and applying fixed increase of rates to properties located in these zones at Rs. 3.30 per sq.ft, Rs 2.50 per sq.ft and Rs 1.60 per sq.ft. respectively is highly irrational, whimsical, discriminatory and violative of Article 14. The petitioner states that the classification of properties in Thiruvannamalai Municipalities as ‘A to C’ zone by 4th Respondent under impugned guidelines is without any basis and materials and mere approval by the Council resolution of 4th Respondent dated 12.10.2018 will not legalize the actions. 9. The petitioner therefore has filed the instant public interest litigation for quashing of impugned Government orders and the subsequent notifications. 10. We called for the records. The records indicate that the property tax was revised in the urban local bodies, in the year 2013. Revision of property tax is done once in four years. Material on record shows that a letter was issued on 21.06.2018, from the Commissioner of Municipal Administration, Ezhilagam, Chepauk, Chennai, to the Principal Secretary to the government, Municipal Administration, in which it was stated that there was revision of property tax during the years 1987, 1993, 1998, 2008. A tabular column was given regarding the fixation of property tax for the years 1987, 1993, 1998, 2008. Letter is being reproduced. From Thiru G. Prakash, I.A.S., Commissioner of Municipal Administration, Secretariat, Ezhilagam Annexe, Chepauk, Chennai-600 009. To The Principal Secretary to Government, Municipal Administration and Water Supply Department, Chennai-600 005 Roc.No.40032/2012/R1, Dated:04.07.2018. Sir, Sub: Property Tax - Corporations, Municipalities and Town Panchayats - General revision of Property Tax - Due on 1.4.2013 - Orders requested - Regarding. Ref: 1. G.O.Ms.No.150, MA&WS (Elec.) Department, Dated:12.11.2007. 2. This office letter Roc.No.40032/2012/R1, Dated:26.9.2012. 3. This office D.O.Lr.Roc.No.40032/2012/R1, Dated:24.1.2015. 4. My D.O. letter No.40032/2012/R1, Dated:14.11.2017. Kind attention of the Government is invited to the references cited. Sir, Sub: Property Tax - Corporations, Municipalities and Town Panchayats - General revision of Property Tax - Due on 1.4.2013 - Orders requested - Regarding. Ref: 1. G.O.Ms.No.150, MA&WS (Elec.) Department, Dated:12.11.2007. 2. This office letter Roc.No.40032/2012/R1, Dated:26.9.2012. 3. This office D.O.Lr.Roc.No.40032/2012/R1, Dated:24.1.2015. 4. My D.O. letter No.40032/2012/R1, Dated:14.11.2017. Kind attention of the Government is invited to the references cited. (2) In this office letter from 2nd to 4th cited, orders of the Government has been requested to carry out general revision of property tax in the Urban Local Bodies with effect from 1.4.2013 as per the existing statutory provision in the relevant Urban Local Body Acts. (3) In continuation of this office letters cited, I am to inform that during the earlier general revision of Property Tax effected in the years 1987, 1993, 1998 and 2008, the following ceiling has been prescribed by the Government with regard to the enhancement of property tax. Description 1987 1993 1998 2008 Residential buildings 1. No enhancement for thatched buildings 2. 100% for buildings wholly or partly occupied 3. 200% for buildings wholly let out 1. 50 % for owner occupied residential buildings 2. 100% for rented residential buildings 1. 50 % for owner occupied residential buildings 2. 100% for rented residential buildings 25% (Subsequently it has been ordered that decision on ceiling of revision of property tax may be taken by the respective Municipal councils) Industrial buildings 300% for buildings used for non-residential purpose 150% 150% 100% 150% 150% 150% (4) In view of the above, taking into account of the earlier orders of the Government and the present financial position of the Urban Local Bodies consequent on the implementation of 8th Pay Commission Recommendations and the escalation of cost for the provision of basic amenities, I suggest that the following ceiling for the enhancement of tax may be fixed by the Government for the current general revision of property tax in the Urban Local Bodies. Description Percentage Residential buildings Not more than 50% Industrial buildings Not more than 75% Commercial buildings Not more than 75% (5) Further, in order to have regular increase in the Property tax head of urban local bodies and to reduce the burden on the tax payers due to revision of property tax once in five years, I suggest that after this general revision of property tax, an increase of 10% on property tax may be effected by the urban local bodies every year on the property tax assessments. In this regard, I am to inform that in respect of Corporations there is no need for Act amendment and an executive order from the Government is enough. Whereas, in the case of Municipalities and Town 3anchayats, amendment has to be made in the Schedule-IV - Taxation and Finance Rules of the Tamil Nadu District Municipalities Act, 1920. The existing provisions on revision of property tax in the Corporation Acts and in the Tamil Nadu District Municipalities Act, 1920 are tabulated below:- Act Section/Rule No. Existing Provision The Chennai City Municipal Corporation Act, 1919 Schedule-IV - Part 1A - Assessment of Property Tax - Rule 4(4) The property tax card shall be valid until the assessment is revised during a general revision or earlier, as the Government may direct in this behalf. The Madurai City Municipal Corporation Act, 1971 Schedule-II - Part-II - Assessment of Property Tax - Rule 7(4) The property tax card shall be valid until the assessment is revised during a general revision or earlier, as the Government may direct in this behalf. The Coimbatore City Municipal Corporation Act, 1981(This Act provisions are applicable to other newly formed Corporations viz. Tiruchirapalli, Salem, Tirunelveli, Tiruppur, Erode, Vellore and Thoothukudi also) Schedule-II - Part-II - Assessment of Property Tax - Rule 7(4) The property tax card shall be valid until the assessment is revised during a general revision or earlier, as the Government may direct in this behalf. The Tamil Nadu District Municipalities Act, 1920 Schedule-IV - Part-I - Rule 8(1) The assessment books shall be completely revised by the Executive Authority once in every five years. Accordingly I suggest the amendment to the Tamil Nadu District Municipalities Act, 1920 as in Annexure for orders of the Government. I request early orders in the matter.” 11. The Tamil Nadu District Municipalities Act, 1920 Schedule-IV - Part-I - Rule 8(1) The assessment books shall be completely revised by the Executive Authority once in every five years. Accordingly I suggest the amendment to the Tamil Nadu District Municipalities Act, 1920 as in Annexure for orders of the Government. I request early orders in the matter.” 11. This was followed by G.O.(Ms) No.73, Municipal Administration and Water Supply (MA.IV) Department, dated 19.07.2018 (impugned herein), fixing the property tax. The said G.O.(Ms).No.73, which impugned in the instant writ petition reads as under:- ABSTRACT Property Tax - General Revision of Property Tax in the Greater Chennai Corporation/Municipal Corporations/Municipal/ties, and Town Panchayats-Orders issued Municipal Administration and Water Supply (MA.IV) Department G.O. (Ms) No.73 Dated: 19.07.2018 Read:- 1. G.O(Ms) No.150 Municipal Administration and Water Supply (Election) Department, Dated 12.11.2007. 2. G.O(Ms) No. 110 Municipal Administration and Water Supply (Election) Department, Dated 25.06.2008. 3. From the Commissioner, Greater Chennai Corporation letter Va.Thu.Na.Ka.No.G1/9317/2014 dated 27.06.2018 and 16.7.2018. 4. From the Commissioner of Municipal Administration letter Roc No.40032/2012/R1, dated 04.7.2018 and 13.7.2018. 5. From the Director of Town Panchayats letter Na.Ka.No.6783/2018/E5, dated. 04.07.2018. 6. Orders of the Hon’ble Division Bench of Madras High Court in W.P, No.2730/18 Dated 17.07.2018. ORDER:- In the Government Order first and second read above, orders and necessary guidelines were issued that the general revision of Property Tax in all Municipal Corporations, Municipalities, Third Grade Municipalities and Town Panchayats shall be taken up with effect from 01.04.2008, as per the existing statutory provisions in the relevant Urban Local Bodies Act. 2. In the letter third, fourth and fifth read above, the Commissioner, Greater Chennai Corporation, Commissioner of Municipal Administration and the Director of Town Panchayats have requested to issue orders to carry out general revision of property tax in the Urban Local Bodies as per the existing statutory provisions in the relevant urban Local Body Acts as follows:. SI. No. Description Proposed revision of property tax 1. Residential buildings Not more than 50% 2. Rented Residential buildings Not more than 100% 3. Non Residential buildings Not more than 100% 3. SI. No. Description Proposed revision of property tax 1. Residential buildings Not more than 50% 2. Rented Residential buildings Not more than 100% 3. Non Residential buildings Not more than 100% 3. In the order sixth read above, among others the Hon’ble Division Bench of Madras High Court has also directed the Principal Secretary, Municipal Administration and Water Supply Department to take a decision with regard to proposal submitted by the commissioner Corporation of Chennai within a period of two weeks regarding revision of property tax and report to the Court in the next hearing which has been fixed on 03.08.2018. 4. The Government after detailed examination of the proposals of the Commissioner, Greater Chennai Corporation, the Commissioner of Municipal Administration, the Director of Town Panchayats and also based on the directions of the Hon’ble Division Bench of Madras High Court in W.P. No.2730 of 2018, have decided that the following general revision of Property Tax in Greater Chennai Corporation, Municipal Corporations, Municipalities, and Town Panchayats shall be taken-up with effect from the current half-year ac per the existing provisions in the relevant Urban Local Bodies Act: - SI. No. Description Proposed revision of property tax 1. Residential buildings Not more than 50% 2. Rented Residential buildings Not more than 100% 3. Non Residential buildings Not more than 100% Necessary guidelines for the general revision of Property Tax will be issued by the Commissioner of Municipal Administration/Commissioner of Greater Chennai Corporation/Director of the Town Panchayats separately by following the stipulated guidelines. (By Order of the Governor) HARMANDER SINGH PRINCIPAL SECRETARY TO GOVERNMENT 12. Material on record shows that the Government received lot of representations protesting against the enhancement of property tax of rented residential buildings up to 100%. A note was put up to reduce the property tax. It was decided to reduce the property tax enhancement from 100% to 50% for rented residential buildings. The circulation note reads as under:- “NOTE FOR CIRCULATION This file relates to the proposal of the Commissioner, Greater Chennai Corporation, Commissioner of Municipal Administration and the Director of Town Panchayats seeking revised orders with reference to revision of Property Tax in the Urban Local Bodies issued in G.O. (MS) No.73, Municipal Administration and Water Supply (MAIV) Department, Dated 19.07.2018. 2. 2. Based on the proposal received from the Commissioner of Municipal Administration, Director of Town Panchayats and the Commissioner, Greater Chennai Corporation, orders have been issued in G.O (MS) No. 73, Municipal Administration and Water Supply (MAIV) Department, Dated 19.07.2018.revising the property tax from the current half year as follows: SI. No. Description Proposed revision of property tax 1. Residential buildings Not more than 50% 2. Rented Residential buildings Not more than 100% 3. Non Residential buildings Not more than 100% 3. The Commissioner of Municipal Administration, the Director of Town Panchayats and the Commissioner, Greater Chennai Corporation have now stated that the various Residents Welfare Association and general public have made representations that the 100% revision of property tax in respect of Rented Residential Buildings will cause lot of hardship, financial difficulties and hence requested to reduce the property tax revision from 100% on par with Residential Buildings. The Commissioner of Municipal Administration,/the Director of Town Panchayats and the Commissioner, Greater Chennai Corporation have requested to reduce the proposed increase in tax on Rented Residential Buildings from 100% to 50%. 4. This department has examined the above proposals. Considering the circumstances stated in para 3 above, it is now proposed to accept the request of the Commissioner, Greater Chennai Corporation, the Commissioner of Municipal Administration and the Director of Town Panchayats and to amend the G.O (MS) No. 73, Municipal Administration and Water Supply (MAIV) Department, Dated 19.07.2018 by deleting SI. No. 2 of the table in para 2 of the above Government Order, thus providing for revision of all Residential Buildings i.e., including Rented Residential Buildings as not more than 50%. 5. This file may be circulated to the Hon’ble Minister (MA, RD & Spl. Prog. Implementation) through the Addl Chief Secretary (Finance) for orders on this department’s proposal at para 4 above.” 13. The Government thereafter revised the rates by issuing G.O.(Ms) No.76, Municipal Administration and Water Supply (MA.IV) Department, dated 26.07.2018, amending the property tax for the rented residential buildings, stating that it shall not attract the higher property tax and it was reduced from 100% as stated in G.O.(Ms).No.76, to 50%. The Government thereafter revised the rates by issuing G.O.(Ms) No.76, Municipal Administration and Water Supply (MA.IV) Department, dated 26.07.2018, amending the property tax for the rented residential buildings, stating that it shall not attract the higher property tax and it was reduced from 100% as stated in G.O.(Ms).No.76, to 50%. G.O.(Ms).No.76, Municipal Administration and Water Supply (MA.IV) Department, dated 26.07.2018, reads as under:- ABSTRACT Property Tax - General Revision of Property Tax in the Urban Local Bodies.- Orders issued in G.O.(MS) No.73, Municipal Administration and Water Supply Department, Dated 19.07.2018.- Amendment to the Government Order - Issued. Municipal Administration and Water Supply (MA.IV) Department G.O. (MS) No.76 Dated: 26.07.2018 Read:- 1. G.O (Ms) No.73 Municipal Administration and Water Supply Department dated 19.07.2018. 2. From the Commissioner of Municipal Administration letter Roc NO.40032/2012/R1, dated 26.7.2018, 3.From the Commissioner, Greater Chennai Corporation letter va.thu.na.ka.No.G1/11/9317/2014, dated 26.07.2018. 4.From the Director of Town Panchayats letter Na.Ka.No.6783/2018/E5, dated.26.07.2018. ORDER:- In the Government Order first read above, orders have been issued for the general revision of Property Tax in the Urban Local Bodies as follows:- SI. No. Description Proposed revision of property tax 1. Residential buildings Not more than 50% 2. Rented Residential buildings Not more than 100% 3. Non Residential buildings Not more than 100% 2. In the letters second, third and fourth read above, the Commissioner of Municipal Administration, the Commissioner, Greater Chennai Corporation and the Director of Town Panchayats have now stated that the various Residents Welfare Association and general public have made representations that the 100% revision of property tax in respect of Rented Residential Buildings will cause lot of hardship, financial difficulties to Assessees and Tenants and hence requested to reduce the property tax revision from 100% on par with Residential Buildings The Commissioner of Municipal Administration, the Director of Town Panchayats and the Commissioner. Greater Chennai Corporation have requested to reduce the proposed increase in tax on Rented Residential Buildings from 100% to 50%. 3. After examining the above proposals in detail, Government decides to accept the same and direct that the following amendment is issued to G.O (MS) No.73 Municipal Administration and Water Supply Department, dated 19.07.2018. AMENDMENT SI.No.2, in the Tabular Column, para 4, i.e. the Rented Residential Buildings – “Not more than 100 %” shall be deleted. (By Order of the Governor) HARMANDER SINGH PRINCIPAL SECRETARY TO GOVERNMENT 14. AMENDMENT SI.No.2, in the Tabular Column, para 4, i.e. the Rented Residential Buildings – “Not more than 100 %” shall be deleted. (By Order of the Governor) HARMANDER SINGH PRINCIPAL SECRETARY TO GOVERNMENT 14. After G.O.(Ms).No. 76, Municipal Administration and Water Supply (MA.IV) Department was issued, a circular was issued by the Commissioner of Municipal Administration, Chepauk, Chennai, laying down the guidelines for the above revision of property tax, with effect from first of the year of 2018 -2019. The entire circular along with the draft notification is reproduced. Roc. No. 20555/2018/R1 Dated. 20.08.2018 Circular Sub: Property Tax - General Revision of Property Tax in the Municipal Corporations/Municipalities - Guidelines for General revision of property tax 2018 - Instructions - Issued Regarding. Ref: (1) G.O Ms. No 73, Municipal Administration and Water Supply (MA IV) Department, dated. 19.07.2018 (2) G.O Ms. No 76, Municipal Administration and Water Supply (MA IV) Department, dated. 26.07.2018 (3) Minutes of Meeting held on 16.08.2018 ****** In the reference 1st and 2nd cited, the Government have ordered that the general revision of property tax in all the Urban Local Bodies shall be taken up with effect from the current half year of 2018-19 as per the existing provisions in the relevant Urban Local Bodies Act. It has also been ordered that necessary guidelines will be issued by the Commissioner of Municipal Administration in respect of Corporations (other than Chennai Corporation) and Municipalities. Guidelines for General Revision of Property Tax in the ULB, With Effect From 1st half year of 2018-2019 (1) MASTER LIST As per section 81 of Tamil Nadu District Municipalities Act 1920, Section 120 of the Madurai City Municipal Corporation Act, 1971 and Section 121 of the Coimbatore City Municipal Corporation Act, 1981 (which is applicable to all the newly formed Corporations in the State) property tax shall be levied on all buildings and lands within municipal limits. The most important action is to update the property tax demand by bringing into assessment of the omitted properties and the properties which are not subjected to enhancement of tax due to additions and alterations. As the main source of income of the Corporations and Municipalities, is from property tax, the Corporation Commissioners and the Municipal Commissioners are requested to take steps to update the property tax demand by assessing all the properties hither to not brought to property tax net. As the main source of income of the Corporations and Municipalities, is from property tax, the Corporation Commissioners and the Municipal Commissioners are requested to take steps to update the property tax demand by assessing all the properties hither to not brought to property tax net. At the first instance, the Corporations Commissioners and the Municipal Commissioners are requested to cross refer the records. (a) Records available with Housing Society/Housing Board/Slum Clearance Board, (b) Register of ration cards maintained by Civil Supplies Department (c) House numbering register maintained by the municipalities/Corporations (d) electoral rolls (e) Building application register (f) Correlation register maintained by Town Planning Section and Revenue Sections (g) D&O Licenses list, etc., with that of the existing Demand register. This exercise will help to detect omission in case of filing of property details by assessees for assessing the property tax in the revision and also will help to find out any omission in property tax assessment. The Corporations Commissioners and the Municipal Commissioners are requested to make survey of properties including vacant lands with the available field staff to prepare a Master List of properties assessed and to be assessed. All the properties so far left over are to be assessed to property tax. The field staff should furnish after the survey a rough streetwise tax map indicating the door number and assessment number. The Master List shall be prepared in the enclosed format and also shall be computerized as a basic tax record of the Municipality. The Regional Directors of Municipal Administrations are requested to monitor the survey work on a weekly basis in the municipalities within their jurisdiction and see that the work is completed as per the time schedule, and get the survey particulars from the municipal commissioners and send the compiled survey details along with the Completion Certificate. (2) DEMARCATION For the demarcation of zones and fixing of basic value, the corporation/municipality is to be demarcated into three zones taking into consideration the factors like location, predominant usage, the infrastructure available etc. Basic value has to be fixed in all the Municipalities/Corporations for different zones for the purpose of fixation of rental value of buildings and lands. The basic value is probable rental yield per sq.ft. per month of residential properties. Basic value has to be fixed in all the Municipalities/Corporations for different zones for the purpose of fixation of rental value of buildings and lands. The basic value is probable rental yield per sq.ft. per month of residential properties. For fixing the basic value, the Corporation/Municipality has to adopt the rent obtained per month for newly constructed residential RCC building measuring 1000 sq.ft and to convert it into rental value per sq.ft. The basic value arrived for each zone will be brought to the notice of the council. The Municipal Commissioners can form a committee of official, to do the exercise of earmarking of zones, and arriving of zonal value for each zone. (3) PREPARATION OF MAPS A map should be kept in municipal office showing different zones, streets and lanes within the zones, with reference to indicating the door number covered under all streets and lanes in each zone. There should not be any omission or overlapping of buildings between zones. Demarcation of zones may also be brought to the notice of the council and informed to the public by wide publicity. This information should also be uploaded in the web site of Urban Local Body. (4) RETURNS All the assessees have to file Self-Assessment of Property tax returns in the prescribed format (format enclosed). Unless the returns for all the properties are received, it will not be possible to make assessment. Therefore, all the Executive Authorities of Urban Local Bodies are requested to give wide publicity and obtain the returns from all the assessees without omission. The master list of properties already prepared may be made use of to ascertain any omission. The Executive Authorities are requested to depute Bill collectors, Revenue Inspectors, Assistant Revenue Officers, Revenue Officers, Town Planning Inspectors Sanitary Inspectors, Overseers and Draughtsmen to verify the returns to ensure correct filing of returns of the Assesses. After completing the verification, the tax should be assessed following the guidelines. The self assessment of property tax returns may be printed in different colours for easy identification of usage of buildings. For residential buildings, it is to be printed in light blue paper, for commercial building in light pink paper and for industrial building in white paper. (5) DEPRECIATION Property tax discount depending on the age of building should be given towards depreciation. For residential buildings, it is to be printed in light blue paper, for commercial building in light pink paper and for industrial building in white paper. (5) DEPRECIATION Property tax discount depending on the age of building should be given towards depreciation. Upto 5 years No discount From 5 to 15 years 10% From 15 to 25 years 15% Above 25 years 20% (6) NATURE OF BUILDING Buildings are broadly classified as thatched, tiled and RCC ones. Since the basic value has been arrived at taking a RCC building as the standard, the rental proceeds from other types of buildings like thatched and tiled, AC sheet or GA sheet roofing’s etc., may be less. Therefore discount has to be given for other type of buildings as follows: For RCC building No discount For tiled, AC sheet and GA sheet, etc. 25% Roof buildings For thatched roof buildings 50% (7) USE OF BUILDING The unit of basic value is for a newly constructed RCC Residential building. Therefore, it is necessary that in case of buildings used for industrial purpose or commercial purposes (including Nursing Homes, Kalyanamandapams) the computed basic value has to be raised suitably as stipulated below: Building for Educational purpose One and half the basic value Building for industrial use Double the basic value For Commercial use including nursing homes etc. Kalyanamandapam etc. Thrice the basic value Building for the hoardings and communication towers fetching rent may not be treated as commercial buildings. (8) CEILING In respect of buildings coming under specialised category, buildings like Star hotels, Theme parks, Multiplexes, Shopping malls, Air conditioned wedding halls, Super Specially Hospitals, etc. may be treated as separate category. Separate basic value may be fixed by the concerned (local body). This overall enhancement of tax in quinquennial revision should not be exorbitant is as to cause, severe hardship to the assessees. Therefore, the following ceiling is fixed for the enhancement of taxes consequent on the quinquennial revision of property tax, the ceiling fixed should not be exceeded the limit prescribed. This overall enhancement of tax in quinquennial revision should not be exorbitant is as to cause, severe hardship to the assessees. Therefore, the following ceiling is fixed for the enhancement of taxes consequent on the quinquennial revision of property tax, the ceiling fixed should not be exceeded the limit prescribed. Residential buildings - Not more than 50% Non Residential Buildings - Not more than100% For all buildings assessed including commercial and industrial building in the post revision period, the following ceiling is proposed: For buildings assessed and those which were subject to revision for 01.04.2017 to 31.03.2018 No revision In the previous revision the Government offices located in private buildings were assessed on the actual rent paid by the Department. Hence, for the private buildings occupied by Government Departments, the above guidelines prescribed may be followed in the ensuing revision. In respect of revision of property tax for Government Buildings the enhancement of property tax is fixed at 50%. It should be also ensured that in no case revised tax should not be less than the existing tax. The return forms to be furnished by the assessees can be supplied at free of cost. The entire exercise of revision of property tax should be completed befo - 24.12.2018. The entire exercise of revision of property tax should be computerized. Data base of the properties with all relevant details shall be created at urban local body, regional and State Level. All the pending cases covered by litigation to be examined thoroughly case by case, for quick disposal of pending cases. In respect of long pending cases the courts may be moved for direction for remittance of tax by parties as deposit with the Municipalities. The Corporations Commissioners and the Municipal Commissioners are requested to complete the above tasks as per the time schedule and request to furnish the particulars of survey along with the Completion Certificate. Sd/- G.Prakash Commissioner of Municipal Administration 15. A perusal of the notification would show that the zones were directed to be demarcated. The Corporations Commissioners and the Municipal Commissioners are requested to complete the above tasks as per the time schedule and request to furnish the particulars of survey along with the Completion Certificate. Sd/- G.Prakash Commissioner of Municipal Administration 15. A perusal of the notification would show that the zones were directed to be demarcated. It was decided that for the demarcation of zones and fixing of basic value, the Municipality was to be demarcated in three zones taking into consideration facts like location, predominant usage, the infrastructure available, etc., It was also directed that the basic value to be fixed in all the Municipalities, Corporations for different zones, for the purpose of fixation of rental value of buildings and lands. It was directed that for fixing the basic value, the Corporation/Municipality has to adopt the rent obtained per month for newly constructed residential RCC building measuring 1000 sq.ft and to convert it into rental value per sq.ft. The Officers were directed to prepare maps showing different zones, streets and lanes within the zones, with reference to indicating the door number covered under all the streets and lanes in each zone. It was also decided that the property tax discount depending upon the age of the buildings should be given towards depreciation. 16. A perusal of the circular would show that the buildings from 5 to 15 years would be given 10% discount, from 15 to 25 years 15% discount would be given, and for above 25 years, 20% discount would be given. The nature of the building is also broadly classified as thatched, tiled and RCC for fixing the property tax. The use of building was also considered. A proforma was to be prepared for Municipality/Corporation and the wards. The proforma reads as under:- PROFORMA Sl. No Name of the Municipalities/Corporation Total No. of Wards Total No. of existing Property Tax assessments as on 19.07.2018 ward-wise Property Tax demand for assessments in column-4 Ward-wise (Rs. In lakhs) Total No. of Property Tax Assessments as on 24.09.2018 Ward-wise Property Tax Demand for the Assessments mentioned in Column 6 ward-wise (Rs.in lakhs) Certificate Remarks 1 2 3 4 5 6 7 8 9 Certified that all the buildings and lands within municipalities/corporations area have been assessed, to property tax including the addition alterations made after the last Quinquennial Revision and that there is no omission in assessment. 17. 17. A perusal of the above mentioned procedure would show that a detailed study was done to ensure that no property escapes the net of property tax. The proposed notification informing people, about the property tax was also prepared. Based on the above mentioned circulars, Thiruvannamalai Municipality has been divided into three zones. All the streets in the Municipality were divided in accordance with the circular, extracted supra. Based on the circular, division of the category has been changed and a notification has been issued on 16.10.2018. A perusal of the notification dated 16.10.2018 would show that 278 streets are divided as Zone-A, 162 streets divided as Zone-B and 15 streets divided as Zone-C. 18. The above mentioned exercise and circulars issued would show that the averments of the petitioner that there is no basis for increasing the property tax cannot be accepted. This Court is not venturing into a street by street analysis of upgradation from Zone C to Zone B or Zone A or Zone B to Zone A. It is also to be seen that some cases streets, has been downgraded. It cannot be said that the rates are fixed without any basis. The calculation of the base rate has been fixed strictly in accordance with the circular. Other than making a bald statement that the rate fixed is highly irrational and discriminatory, the petitioner has not been able to demonstrate as to how there is discrimination and the entire exercise is arbitrary in nature. Property tax has been devised on the basis of zones, which has been fixed on the basis of the guidelines laid down in the circular. The Municipality has been divided into three zones. The criteria as to how the zones are to be demarcated is well defined and tax has been revised. 19. It cannot be said that this method of dividing the Municipality into three zones, taking in to account, the location, predominant usage, the infrastructure available for the area as arbitrary or whimsical. 20. There is no merit in the writ petition and therefore, the Writ Petition is dismissed. No Costs. Consequently, the connected miscellaneous petitions are closed.