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Ms Anjali Bhasin Vs. Municipal Corporation of Delhi (UOI) Judgement dt. 7.1.2025

27. The above quoted judgement leaves me in no doubt that the "misuse/conversion charges imposed by the MCD in its impugned order are nothing but "tax".

Whether MCD has power to impose misuse/conversion charges.

28. Ld. Counsel for appellant has argued that specific power to impose and recover tax/levy/fee/charges are governed specifically under chapter VIII (Section 113 to 183) of the DMC Act and that it does not empower MCD to impose misuse or conversion charges. It is argued that conversion charges are covered under the definition of "Tax" and no tax can be imposed by Government or any Authority unless empowered by a statute. It is argued that the "misuse/conversion charges are not mentioned in the list of taxes, which MCD is empowered to levy under as per Section 113 of DMC Act. It is submitted by Ld. Counsel for appellant that Section 113 of DMC Act does not even remotely relate to misuse/conversion charges claimed by MCD from the appellant. It is argued that as per Article 256 of the Constitution of India no tax/levy/fee or charge of any nature whatsoever can be imposed without the authority of the law.

As the conversion charges do not find mention in the list of taxes described in Section 113 of DMC Act, the other taxes including conversion charges can be imposed only through by following the procedure of Section 150 of DMC Act.

The reply of MCD is silent on the issue as to whether the Office Order No. 55/Addl.Com.Engg./2010 dated 07.06.2010 had been issued by MCD after following the procedure of Section 150 of DMC Act. MCD is directed to file specific answer to this question along with relevant documents.

"2. Definitions. - (1) in these bye-laws -

                            (a)    .......
                            (b)    .......
                            (c)    .......
                            (d)    .......
                            (e)    "tax' means property tax, that is to say, a
                                   building tax or a vacant land tax or both."

40. The aforesaid definition and the entire BBL do not include misuse/conversion charges in the definition of property tax. Therefore, it is clear that conversion/misuse charges are not included in the list of taxes enumerated in Section 113 of DMC Act. However, statute provides a procedure to impose taxes, which have not been listed in Section 113. This procedure has been provided under Section 150 of DMC Act.

Ms Anjali Bhasin Vs. Municipal Corporation of Delhi (UOI) Judgement dt. 7.1.2025

63. It will not out of place to mention that as per Section 347 of DMC Act, Commissioner MCD can permit change of user of a building. However, for imposing conversion charges or misuse charges, MCD must comply Section 150 of DMC Act. In absence of a legislative action under Section 150 of DMC Act, MCD can neither levy these charges nor recover the same.