E-Paper
Property tax: No coercive action against Delhi airport operator, high court tells cantonment board
New Delhi
New Delhi
The Delhi High Court on Thursday directed the Delhi Cantonment Board (DCB) not to take any coercive action against Delhi International Airport Ltd (DIAL), which operates the IGI Airport, in connection with the Rs 2,600 crore property tax demand sent by the authority for the 2016-19 period.
A bench of Chief Justice D N Patel and Justice Prateek Jalan issued the direction after DCB sought one more week to file its response to DIAL’s plea challenging the property tax demand. It noted that both the Centre and the DCB were yet to file their replies and wanted more time to do so.
“Time, as sought, is granted to file the replies. Meanwhile, no coercive action be taken against the petitioner (DIAL) till the next date of hearing,” the bench said and listed the matter on September 14.
Besides seeking quashing of the June 15 order demanding over Rs 2,589 crore, the plea sought a declaration that the land on which the airport is located is not a cantonment and, therefore, does not fall in DCB’s jurisdiction.
The petition sought setting aside of the past letters of DCB seeking payment of varying amounts of property tax in respect of a certain portion of the airport land that purchased in 1940 by the International Airport Authority of India from the Defence Estate Authorities (presently DCB) for a consideration of Rs 4.61 crore.
According to the petition, part of the airport land falls in the jurisdiction of the South Delhi Municipal Corporation for which DIAL pays property tax to the civic body. For the remaining portion, DCB has been demanding property tax.
DIAL has contended that instead of explaining how it arrived at the earlier amount, DCB “completely revised the amount and sought to impose a completely arbitrary and exorbitant amount”. DIAL also said if such a huge amount is levied on it, it would be constrained to recover it through the tariff charged at the airport, which would ultimately be transferred to the passengers as an undue financial burden.
No immediate comment was available from DIAL.
