Iconic stores, cafes among five more outlets sealed in NDMC’s Connaught Place tax drive
An NDMC official, who asked not to be named, said that five units were sealed and those which had made part payment were allowed to continue their operations
New Delhi The New Delhi Municipal Council (NDMC) on Tuesday night sealed five properties – three apparel stores, including the 143-year-old Mohanlal & Sons, one office, and a cafe – in Connaught Place for non-payment of property taxes, traders and NDMC officials said.

Atul Bhargava, who heads the New Delhi Traders Association, said that the teams from tax department returned to market on Tuesday night and started sealing shops in B block. This was the second such raid in the past 10 days that has led to strong protests from traders, who say they are being arbitrarily targeted instead of a tax dispute being resolved amicably, and a sharp pushback from NDMC officials, who defend their action as rightful in light of unpaid dues running into thousands of crores.
“They have sealed shut properties in B block housing outlets of Levi’s, Mohanlal & Sons, among others. All these properties had common ownership and property identity number, but a pick-and-choose policy is being adopted. We have demanded that a uniform tax assessment system should be brought into effect on lines of MCD as there is problem in tax assessment system. Exorbitant amounts of tax is being demanded. Which brand would like to come to CP if they are treated this way,” Bhargava said.
An NDMC official, who asked not to be named, said that five units were sealed and those which had made part payment were allowed to continue their operations. “The sealing drive in Connaught Place will continue in coming days. Many of the top tax defaulters in New Delhi area are located in Connaught Place with 150 units having an estimated pendency of approximately ₹1,950 crore,” the official said. The New Delhi area has around 1,500 long-term defaulters with arrears amounting to ₹3,500 crore, according to officials from the property tax department.
Officials said that tax payments have not been made by properties over several years due to disputes between landlords and tenants.
According to their website, Mohanlal Sons was started in 1881 as Trevillion and Clark by a British couple. In 1935, they opened a showroom in Connaught Place. In 1945, Lala Mohanlal took over the business and renamed it Mohanlal Sons. Over the next decades, the outlet has been a destination for bespoke tailoring and celebration wear and has served Prime Ministers, Presidents, Chief Justices, cricketers and movie stars. The outlet now has 26 showrooms spread across the country. To be sure, the property is not owned by the Mohanlal Sons, they are the tenants.
The other shops sealed on Tuesday include B block outlets of Levi’s, Nike and Immigrant Cafe.
NDMC’s action last week, when it sealed seven properties in the D, A and L blocks, prompted the New Delhi Traders Association to say it would seek legal recourse on the matter. NDTA also held a meeting with NDMC vice-chairman Satish Upadhayay on Sunday, demanding that a uniform unit area method of tax assessment be introduced.
Satish Upadhyay, the NDMC vice chairman, said that the pendency is very large and a body such as NDMC cannot run if people don’t pay due taxes. “What can NDMC do if people are not paying taxes for years on end? There are disputes between the tenants and property owners. The tenants say that they have paid tax and owners doesn’t pay tax, then where should the NDMC go?” he asked.
Upadhyay, who was the former president of the Delhi BJP,said consultations were ongoing. “Are shops being sealed without any reason? NDMC and MCD have attached the accounts of government departments in past for non-payment of taxes as well. We agree with their demand of application of Unit Area Method so that uniform tax regime can be applicable across the city... We are not against any business or traders.”
The unit area method (UAM) of calculating property tax was introduced in MCD areas in April 2004. MCD’s formula used for tax calculation depends on the unit area value (per sq metre) depending on the area, age of property, nature of the structure, and occupancy.
NDMC, on the other hand, says it uses two methods – actual or comparable rent, and UAM. Introduced in 2009, UAM is used by 90% taxpayers. The rest are assessed on the basis of comparable or actual rent method.
“Earlier the tax was calculated based on the rent value, but when NDMC introduced the unite area method in 2009, the trade associations opposed it in courts. It was argued that the NDMC Act needs to be amended by Parliament for implementing any change in the tax system. The courts allowed the petitioners to voluntarily adopt the unit area method or continue the existing assessment formula. The body is working on getting the NDMC Act for bringing a uniform tax policy,” an NDMC official who asked not to be named said.
On Wednesday, the notice pasted outside the sealed properties said: “Report of attachment of property number B17 B18, B19, B20, B21 on ground floor and B43, B44, B45 B46 on first floor and back portion of plot number 5 B Block Connaught Place. In compliance with direction of attachment section 102 of NDMC Act 1994... the above cited property/premise has been distained and sealed in the presence of the owner/occupier of premises.” It was undersigned by the section officer of the tax recovery cell of NDMC.
Manoj Aggarwal , the owner of Mohanlal Sons said the tenancy of the property is still under Trevillion and Clark and that the brand has been run by their family since 1945.
“We are shocked with the way NDMC is dealing with this. They have disconnected the water supply and electricity and treated us like criminals. We have been paying property tax as per the unit area method till date and there is nothing pending,” he said.
DK Jain, who runs the Levi’s outlet, said that eightproperties had a common owner and a combined tax demand of ₹45 crore was made. “They have allowed some to remain open after payment while others have not been provided this opportunity. We were not even told the segregated tax for our property. Such arbitrary decisions are being taken by sealing teams. Some were left open after making payments of ₹3.5 crore,” he added.
Jain said that they wanted to make payment on basis of UAM method. “We did not even get the tax notice. NDMC officials said that they had issued notice to the property owner. We are already in dispute with the property owners.”
Pushpendra, an employee of the Nike’s outlet said that the teams suddenly arrived late evening on Tuesday. “We do not know when the shop will open again.”

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