New Delhi, Mar 13 (KNN) Entrepreneurs in Delhi got a huge relief from the Delhi High Court as they will not have to pay double property tax on rented industrial and commercial property.

The Municipal Corporation of Delhi (MCD) had increased the occupancy factor for rental non-residential property from one to two.

The Delhi's entrepreneurs' organization Apex Chamber of Commerce and Industry Delhi had appealed against this in the court.

Vice President of this organization Raghuvansh Arora told that the Corporation Evaluation Committee (MVC) has the right to increase the occupancy factor.

The occupancy factor for rental and non-residential property under MVC-3 was increased from one to two under MVC-3. But MVC is valid for 3 years.

“This MVC is out of date a long time ago. Therefore, now property tax cannot be charged according to the increased occupancy factor-2. But the MCD has been demanding property tax from the entrepreneurs due to the increased occupancy factor for the last two-three years,” said Arora.

The MCD increased the occupancy factor to 2 in July last year. Due to which the entrepreneurs will have to pay property tax at double the rate on the industrial and commercial property on rent.

The court has given immediate relief to pay property tax according to occupancy factor-1 before March 31. The next hearing of the matter will be on August 9.  (KNN Bureau)