The Delhi Municipal Corporation Act, 1957
Administered Ministry: Ministry of Home Affairs / Department of States
Section
Section 156A Recovery of property tax.
1[156A. Recovery of property tax.—If, after the coming into force of the Delhi Municipal Corporation (Amendment) Act, 2003, any owner of any vacant land or covered space of building or any other person liable to pay the property tax or any occupier, in the absence of any such owner or person, does not file a return of self-assessment within sixty days of the coming into force of the Delhi Municipal Corporation (Amendment) Act, 2003, or if the person liable for the payment of property tax does not pay the amount due within the due date, such sum together with all costs and penalty may be recovered under a warrant, issued in the form set forth in the Eighth Schedule, by distress and sale of the movable property, or the attachment and sale of the immovable property, of the defaulter:
Provided that the Commissioner shall not recover any sum the liability for which has been remitted on appeal under the provisions of this Act.]
Provided that the Commissioner shall not recover any sum the liability for which has been remitted on appeal under the provisions of this Act.]
1. Ins. by Delhi Act 6 of 2003, s. 26 (w.e.f. 1-8-2003).
Section 157 Distress.
(1) It shall be lawful for any officer or other employee of 1[2[the Corporation]] to whom a warrant issued under section 156 is addressed to distrain, wherever it may be found in any place in Delhi, any movable property or any standing timber, growing crops or grass belonging to the person therein named as defaulter, subject to the following conditions, exceptions and exemptions, namely:--
(a) the following property shall not be distrained:---
(i) the necessary wearing apparel and bedding of the defaulter, his wife and children and their cooking and eating utensils;
(ii) tools of artisans;
(iii) books of account; or
(iv) when the defaulter is an agriculturist, his implements of husbandry, seed, grain and such cattle as may be necessary to enable the defaulter to earn his livelihood;
(b) the distress shall not be excessive, that is to say, the property distrained shall be as nearly as possible equal in value to the amount recoverable under the warrant, and if any property has been distrained which, in the opinion of the Commissioner, should not have been distrained, it shall forthwith be released.
(2) The person charged with the execution of a warrant of distress shall forthwith make an inventory of the property which he seizes under such warrant, and shall, at the same time, give a written notice in the form set forth in the Ninth Schedule, to the person in possession thereof at the time of seizure that the said property will be sold as therein mentioned.
(a) the following property shall not be distrained:---
(i) the necessary wearing apparel and bedding of the defaulter, his wife and children and their cooking and eating utensils;
(ii) tools of artisans;
(iii) books of account; or
(iv) when the defaulter is an agriculturist, his implements of husbandry, seed, grain and such cattle as may be necessary to enable the defaulter to earn his livelihood;
(b) the distress shall not be excessive, that is to say, the property distrained shall be as nearly as possible equal in value to the amount recoverable under the warrant, and if any property has been distrained which, in the opinion of the Commissioner, should not have been distrained, it shall forthwith be released.
(2) The person charged with the execution of a warrant of distress shall forthwith make an inventory of the property which he seizes under such warrant, and shall, at the same time, give a written notice in the form set forth in the Ninth Schedule, to the person in possession thereof at the time of seizure that the said property will be sold as therein mentioned.
1. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
2. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
2. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
Section 158 Disposal of distrained property and attachment and sale of immovable property.
(1) When the property seized is subject to speedy and natural decay or when the expense of keeping it in custody is, when added to the amount to be recovered, likely to exceed its value, the Commissioner shall give notice to the person in whose possession the property was at the time of seizure that it will be sold at once, and shall sell it accordingly by public auction unless the amount mentioned in the warrant is forthwith paid.
(2) If the warrant is not in the meantime suspended by the Commissioner, or discharged, the property seized shall, after the expiry of the period named in the notice served under sub-section (2) of section 157, be sold by public auction by order of the Commissioner.
(3) When a warrant is issued for the attachment and sale of immovable property, the attachment shall be made by an order prohibiting the defaulter from transferring or charging the property in any way, and all persons from taking any benefit from such transfer or charge, and declaring that such property would be sold unless the amount of tax due with all costs of recovery is paid into the municipal office within fifteen days from the date of the attachment.
(4) Such order shall be proclaimed at some place on or adjacent to such property by beat of drum or other customary mode and a copy of the order shall be affixed on a conspicuous part of the property and upon a conspicuous part of the municipal office and also, when the property is land paying revenue to the Government, in the office of the collector.
(5) Any transfer of or charge on the property attached or any interest therein made without written permission of the Commissioner shall be void as against all claims of 1[2[the Corporation]] enforceable under the attachment.
(6) The surplus of the sale-proceeds, if any shall, immediately after the sale of the property, be credited to the Municipal Fund, and notice of such credit shall be given at the same time to the person whose property has been sold or his legal representative and if the same is claimed by written application to the Commissioner within one year from the date of the notice, a refund thereof shall be made to such person or representative.
(7) Any surplus not claimed within one year as aforesaid shall be the property of 1[2[the Corporation]].
(8) For every distraint and attachment made in accordance with the foregoing provisions, a fee of such amount not exceeding two-and-a-half per cent. of the amount of the tax due as shall in each case be fixed by the Commissioner, shall be charged, and the said fee shall be included in the costs of recovery.
(2) If the warrant is not in the meantime suspended by the Commissioner, or discharged, the property seized shall, after the expiry of the period named in the notice served under sub-section (2) of section 157, be sold by public auction by order of the Commissioner.
(3) When a warrant is issued for the attachment and sale of immovable property, the attachment shall be made by an order prohibiting the defaulter from transferring or charging the property in any way, and all persons from taking any benefit from such transfer or charge, and declaring that such property would be sold unless the amount of tax due with all costs of recovery is paid into the municipal office within fifteen days from the date of the attachment.
(4) Such order shall be proclaimed at some place on or adjacent to such property by beat of drum or other customary mode and a copy of the order shall be affixed on a conspicuous part of the property and upon a conspicuous part of the municipal office and also, when the property is land paying revenue to the Government, in the office of the collector.
(5) Any transfer of or charge on the property attached or any interest therein made without written permission of the Commissioner shall be void as against all claims of 1[2[the Corporation]] enforceable under the attachment.
(6) The surplus of the sale-proceeds, if any shall, immediately after the sale of the property, be credited to the Municipal Fund, and notice of such credit shall be given at the same time to the person whose property has been sold or his legal representative and if the same is claimed by written application to the Commissioner within one year from the date of the notice, a refund thereof shall be made to such person or representative.
(7) Any surplus not claimed within one year as aforesaid shall be the property of 1[2[the Corporation]].
(8) For every distraint and attachment made in accordance with the foregoing provisions, a fee of such amount not exceeding two-and-a-half per cent. of the amount of the tax due as shall in each case be fixed by the Commissioner, shall be charged, and the said fee shall be included in the costs of recovery.
1. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
2. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
2. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
Section 159 Recovery from a person about to leave Delhi.
(1) If the Commissioner has reason to believe that any person from whom any sum is due or is about to become due on account of any tax is about to move from Delhi, he may direct the immediate payment by such person of the sum so due or about to become due and cause a notice of demand for the same to be served on such person.
(2) If, on the service of such notice, such person does not forthwith pay the sum so due or about to become due, the amount shall be leviable by distress or attachment and sale in the manner hereinbefore provided, and the warrant of distress or attachment and sale may be issued and executed without any delay.
(2) If, on the service of such notice, such person does not forthwith pay the sum so due or about to become due, the amount shall be leviable by distress or attachment and sale in the manner hereinbefore provided, and the warrant of distress or attachment and sale may be issued and executed without any delay.
Section 160 Power to institute suit for recovery.
Instead of proceeding against a defaulter by distress and sale as hereinbefore provided, or after a defaulter has been so proceeded against unsuccessfully or with partial success, any sum due or the balance of any sum due, as the case may be, from such defaulter on account of a tax may be recovered from him by a suit in any court of competent jurisdiction.
Section 161 Power of seizure of vehicles and animals in case of non-payment of tax thereon.
(1) If the tax on any vehicle or animal is not paid, then, instead of proceeding against the defaulter by distress and sale of his other movable property as hereinbefore provided, the Commissioner may, at any time after the tax has become due, seize and detain the vehicle or animal or both and, if the owner or other person entitled thereto does not within seven days in respect of a vehicle and two days in respect of an animal from the date of such seizure and detention, claim the same and pay the tax due together with the charges incurred in connection with the seizure and detention, the Commissioner may cause the same to be sold and apply the proceeds of sale or such part thereof as is required in discharge of the sum due and the charges incurred as aforesaid.
(2) The surplus, if any, remaining after the application of the sale-proceeds under sub-section (1) shall be disposed of in the manner laid down in sub-sections (6) and (7) of section 158.
(2) The surplus, if any, remaining after the application of the sale-proceeds under sub-section (1) shall be disposed of in the manner laid down in sub-sections (6) and (7) of section 158.
Section 162 Occupiers may be required to pay rent towards satisfaction of property taxes.
(1) For the purposes of recovering the amount of any property tax from any occupier under section 122, the Commissioner shall cause to be served on such occupier a notice requiring him to pay to 1[2[the Corporation]] any rent due or falling due from him in respect of the land or building to the extent necessary to satisfy the portion of the sum due for which he is liable under the said section.
(2) Such notice shall operate as an attachment of the said rent unless the portion of the sum due shall have been paid and satisfied and the occupier shall be entitled to credit in account with the person to whom such rent is due for any sum paid by him to 1[2[the Corporation]] in pursuance of such notice:
Provided that if the person to whom such rent is due is not the person primarily liable for payment of the property tax, he shall be entitled to recover from the person primarily liable for the payment of such tax any amount for which credit is claimed as aforesaid.
(3) If any occupier fails to pay to 1[2[the Corporation]] any rent due or falling due which he has been required to pay in pursuance of a notice served upon him as aforesaid, the amount of such rent may be recovered from him by 1[2[the Corporation]] as an arrear of tax under this Act.
(2) Such notice shall operate as an attachment of the said rent unless the portion of the sum due shall have been paid and satisfied and the occupier shall be entitled to credit in account with the person to whom such rent is due for any sum paid by him to 1[2[the Corporation]] in pursuance of such notice:
Provided that if the person to whom such rent is due is not the person primarily liable for payment of the property tax, he shall be entitled to recover from the person primarily liable for the payment of such tax any amount for which credit is claimed as aforesaid.
(3) If any occupier fails to pay to 1[2[the Corporation]] any rent due or falling due which he has been required to pay in pursuance of a notice served upon him as aforesaid, the amount of such rent may be recovered from him by 1[2[the Corporation]] as an arrear of tax under this Act.
1. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
2. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
2. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
Section 163 Demolition, etc., of buildings.
If any building is wholly or partly demolished or destroyed or otherwise deprived of value, the Commissioner may, on the application in writing of the owner or occupier, remit or refund such portion of any tax assessed on the rateable annual value thereof as he thinks fit.
Section 164 Omitted..
164. [Remission or refund of tax.] Omitted by Delhi Municipal Corporation (Amendment ) Act, 2003 (Delhi Act 6 of 2003), s. 27 (w.e.f. 1-8-2003).
Section 165 Omitted..
165. [Power to require entry in assessment list of details of buildings.] Omitted by s. 28, ibid. (w.e.f. 1-8-2003).
Section 166 Omitted..
166. [Notice to be given of the circumstances in which remission or refund is claimed.] Omitted by s. 29, ibid. (w.e.f. 1-8-2003).
Section 167 Omitted..
167. [What buildings, etc., are to be deemed vacant.] Omitted by s. 30, ibid. (w.e.f. 1-8-2003).
Section 168 Omitted..
168. [Notice to be given of every occupation of vacant land or building.] Omitted by s. 31, ibid. (w.e.f. 1-8-2003).
Section 169 Appeal against assessment, etc.
1[169. Appeal against assessment, etc.—(1) An appeal against the levy or assessment or revision of assessment of any tax under this Act shall lie to the Municipal Taxation Tribunal constituted under this section: Provided that the full amount of the property tax shall be paid before filing any appeal:
Provided further that the Municipal Taxation Tribunal may, with the approval of the District Judge of Delhi, also take up any case for which any appeal may be pending before the court of such District Judge. Provided also that any appeal pending before the court of such District Judge shall be transferred to the Municipal Taxation Tribunal for disposal, if requested by the applicant for the settlement thereof on the basis of annual value.
(2) (a) The Government shall constitute a Municipal Taxation Tribunal consisting of a Chairperson ,and such other members as the Government may determine:
Provided that on the recommendation of the Government the Chairperson may constitute one or more separate Benches, each Bench comprising two members, one of whom shall be a member of the Higher Judicial Service of a State or a Union territory and the other member from the higher administrative service, and may transfer to any such Bench any appeal for disposal or may withdraw from any Bench any appeal before it is finally disposed of.
(b) The Chairperson, and not less than half of the other members, of the Municipal Taxation Tribunal shall be persons who are or have been the members of the Higher Judicial Service of a State or a Union territory for a period of not less than five years, and the remaining members, if any, shall have such qualifications and experience as the Government may by rules determine.
(c) The Chairperson and the other members of the Municipal Taxation Tribunal shall be appointed by the Government for a period of five years or till they attain the age of sixty-five years, whichever is earlier.
(d) The other terms and conditions of service of the Chairperson and the other members of the Municipal Taxation Tribunal, including salaries and allowances, shall be such as may be determined by rules by the Government.
(e) The salaries and allowances of the Chairperson and the other members of the Municipal Taxation Tribunal shall be paid from the Municipal Fund.
(3) In every appeal, the costs shall be in the discretion of the Municipal Taxation Tribunal or the bench thereof, if any.
(4) Costs awarded under this section to 2[3[the Corporation]] shall be recoverable by 2[3[the Corporation]] as an arrear of tax due from the appellant.
(5) If 2[3[the Corporation]] fails to pay any costs awarded to an appellant within ten days from the date of the order for payment thereof, the Municipal Taxation Tribunal may order the Commissioner to pay the costs to the appellant.]
Provided further that the Municipal Taxation Tribunal may, with the approval of the District Judge of Delhi, also take up any case for which any appeal may be pending before the court of such District Judge. Provided also that any appeal pending before the court of such District Judge shall be transferred to the Municipal Taxation Tribunal for disposal, if requested by the applicant for the settlement thereof on the basis of annual value.
(2) (a) The Government shall constitute a Municipal Taxation Tribunal consisting of a Chairperson ,and such other members as the Government may determine:
Provided that on the recommendation of the Government the Chairperson may constitute one or more separate Benches, each Bench comprising two members, one of whom shall be a member of the Higher Judicial Service of a State or a Union territory and the other member from the higher administrative service, and may transfer to any such Bench any appeal for disposal or may withdraw from any Bench any appeal before it is finally disposed of.
(b) The Chairperson, and not less than half of the other members, of the Municipal Taxation Tribunal shall be persons who are or have been the members of the Higher Judicial Service of a State or a Union territory for a period of not less than five years, and the remaining members, if any, shall have such qualifications and experience as the Government may by rules determine.
(c) The Chairperson and the other members of the Municipal Taxation Tribunal shall be appointed by the Government for a period of five years or till they attain the age of sixty-five years, whichever is earlier.
(d) The other terms and conditions of service of the Chairperson and the other members of the Municipal Taxation Tribunal, including salaries and allowances, shall be such as may be determined by rules by the Government.
(e) The salaries and allowances of the Chairperson and the other members of the Municipal Taxation Tribunal shall be paid from the Municipal Fund.
(3) In every appeal, the costs shall be in the discretion of the Municipal Taxation Tribunal or the bench thereof, if any.
(4) Costs awarded under this section to 2[3[the Corporation]] shall be recoverable by 2[3[the Corporation]] as an arrear of tax due from the appellant.
(5) If 2[3[the Corporation]] fails to pay any costs awarded to an appellant within ten days from the date of the order for payment thereof, the Municipal Taxation Tribunal may order the Commissioner to pay the costs to the appellant.]
1. Subs. by Delhi Act 6 of 2003, s. 32, for section 169 (w.e.f. 1-8-2003).
2. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
3. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
2. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
3. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
Section 170 Conditions of right to appeal.
No Appeal shall be heard or determined under section 169 unless
(a) the appeal is, in the case of a property tax, brought within thirty days next after the date of authentication of the assessment list under section 124 (exclusive of the time requisite for obtaining a Copy of the relevant entries therein) or, as the case may be, within thirty days of the date on which an amendment is finally made under section 126, and, in the case of any other tax, within thirty days next after the date of the receipt of the notice of assessment or of alteration of assessment or, if no notice has been given, within thirty days after the date of the presentation of the first bill or, as the case may be, the first notice of demand in respect thereof:
Provided that an appeal may be admitted after the expiration of the period prescribed therefor by this section if the appellant satisfies the court that he had sufficient cause for not preferring the appeal within that period;
(b) the amount, if any, in dispute in the appeal has been deposited by the appellant in the office of 1[2[the Corporation]].
(a) the appeal is, in the case of a property tax, brought within thirty days next after the date of authentication of the assessment list under section 124 (exclusive of the time requisite for obtaining a Copy of the relevant entries therein) or, as the case may be, within thirty days of the date on which an amendment is finally made under section 126, and, in the case of any other tax, within thirty days next after the date of the receipt of the notice of assessment or of alteration of assessment or, if no notice has been given, within thirty days after the date of the presentation of the first bill or, as the case may be, the first notice of demand in respect thereof:
Provided that an appeal may be admitted after the expiration of the period prescribed therefor by this section if the appellant satisfies the court that he had sufficient cause for not preferring the appeal within that period;
(b) the amount, if any, in dispute in the appeal has been deposited by the appellant in the office of 1[2[the Corporation]].
1. Subs. by Delhi Act 12 of 2011, s. 2 “the Corporation” (w.e.f. 13-1-2012).
2. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
2. Subs. by Act 10 of 2022, s. 2, for “a Corporation” (w.e.f. 22-5-2022).
Section 171 Finality of appellate orders.
The order of the court confirming, setting aside or modifying an order in respect of any rateable value or assessment or liability to assessment or taxation shall be final:
Provided that it shall be lawful for the 1[Municipal Taxation Tribunal], upon application or on its own motion, to review any order passed by it in appeal within three months from the date of the order.
Provided that it shall be lawful for the 1[Municipal Taxation Tribunal], upon application or on its own motion, to review any order passed by it in appeal within three months from the date of the order.
1. Subs. by Delhi Act 6 of 2003, s. 33, for “court” (w.e.f. 1-8-2003).
Section 172 Power to inspect for purposes of determining rateable value or tax.
172. Power to inspect for purposes of determining 1[annual value] or tax.---(1) The Commissioner may, without giving any previous notice, enter upon and make an inspection of
(a) any land or building for the purpose of determining the 1[annual value] of such land or building;
(b) any stable, garage, or coach house or any place wherein he may have reason to believe that there is any vehicle or animal liable to a tax under this Act;
(c) any place or premises which he has reason to believe are being used or are about to be used for any performance or show in respect of which the theatre tax is payable or would be payable;
(d) any land, building or vehicle in or upon which any advertisement liable to tax under this Act is exhibited or displayed.
(2) The Commissioner may, by written summons, require the attendance before him of any person whom he has reason to believe to be liable to the payment of a tax in respect of a vehicle or animal, or of any servant of any such person and may examine such person or servant as to the number and description of vehicles and animals owned by or in the possession or under the control of such person; and every person or servant of such person so summoned shall be bound to attend before the Commissioner and to give information to the best of his knowledge and belief as to the said matters.
(a) any land or building for the purpose of determining the 1[annual value] of such land or building;
(b) any stable, garage, or coach house or any place wherein he may have reason to believe that there is any vehicle or animal liable to a tax under this Act;
(c) any place or premises which he has reason to believe are being used or are about to be used for any performance or show in respect of which the theatre tax is payable or would be payable;
(d) any land, building or vehicle in or upon which any advertisement liable to tax under this Act is exhibited or displayed.
(2) The Commissioner may, by written summons, require the attendance before him of any person whom he has reason to believe to be liable to the payment of a tax in respect of a vehicle or animal, or of any servant of any such person and may examine such person or servant as to the number and description of vehicles and animals owned by or in the possession or under the control of such person; and every person or servant of such person so summoned shall be bound to attend before the Commissioner and to give information to the best of his knowledge and belief as to the said matters.
1. Subs. by Delhi Act 6 of 2003, s. 2, for "rateable value".
Section 172A Power to appoint an agency for administration of property tax
1[172A. Power to appoint an agency for administration of property tax.--(1) The Commissioner may, subject to such bye-laws as specified by 2[3[the Corporation]] in this behalf, appoint any citizens welfare association recognized by 2[3[the Corporation]] , or any Scheduled bank, or any person or other agency to--
(a) maintain the assessment book under section 124;
(b) collect tax and deposit the same with 2[3[the Corporation]]; and
(c) carry out such other tasks as may be assigned to them by a resolution of the Standing Committee.
(2) Such citizens welfare association, bank or person, or other agency shall be paid such collection charges as may be authorized by such bye-laws as may be specified by 2[3[the Corporation]].]
(a) maintain the assessment book under section 124;
(b) collect tax and deposit the same with 2[3[the Corporation]]; and
(c) carry out such other tasks as may be assigned to them by a resolution of the Standing Committee.
(2) Such citizens welfare association, bank or person, or other agency shall be paid such collection charges as may be authorized by such bye-laws as may be specified by 2[3[the Corporation]].]
1. Ins. by Delhi Act 6 of 2003, s. 35 (w.e.f. 1-8-2003).
2. Subs. by Delhi Act 12 of 2011, s. 2 "the Corporation" (w.e.f. 13-1-2012).
3. Subs. by Act 10 of 2022, s. 2, for "a Corporation" (w.e.f. 22-5-2022).
2. Subs. by Delhi Act 12 of 2011, s. 2 "the Corporation" (w.e.f. 13-1-2012).
3. Subs. by Act 10 of 2022, s. 2, for "a Corporation" (w.e.f. 22-5-2022).
Section 173 Composition.
(1) The Commissioner may, with the previous sanction of the Standing Committee, allow any person to compound for any tax.
(2) Every sum due by reason of the composition of a tax under sub-section (1) shall be recovered as an arrear of tax under this Act.
(2) Every sum due by reason of the composition of a tax under sub-section (1) shall be recovered as an arrear of tax under this Act.
Section 174 Irrecoverable debts.
(1) The Commissioner may write off any sum due on account of any tax or of the costs of recovering any tax if such sum is, in his opinion irrecoverable:
Provided that, where the sum written off in favour of any one person exceeds one hundred rupees, the previous sanction of the Standing Committee shall be first obtained.
(2) The Commissioner shall report to the Standing Committee every case in which any sum has been written off under sub-section (1).
Provided that, where the sum written off in favour of any one person exceeds one hundred rupees, the previous sanction of the Standing Committee shall be first obtained.
(2) The Commissioner shall report to the Standing Committee every case in which any sum has been written off under sub-section (1).