Bombay HC Sets Aside KBMC Property Tax Demands On MIDC Industrial Units In Badlapur
Mumbai, August 21, 2026: The Bombay High Court has ruled that property tax demands raised by the Kulgaon-Badlapur Municipal Council (KBMC) against industrial units operating on MIDC-leased plots in the Badlapur Industrial Area cannot be sustained in the absence of an arrangement with the Maharashtra Industrial Development Corporation (MIDC) for facilities provided by the civic body. A division…
The Bombay High Court has dismissed property tax demands from the Kulgaon-Badlapur Municipal Council (KBMC) against industrial units in the MIDC-leased plots of the Badlapur Industrial Area. The decision, made on August 5, stems from a conflict over the assessment of property tax based on capital value. The court cited a recent Supreme Court ruling that exempted MIDC plots from property tax unless an arrangement is made with MIDC for the facilities provided.
The division bench of Justices G S Kulkarni and Aarti Sathe held that KBMC must establish that it is providing facilities and amenities in the MIDC area to seek tax payments. The judgment offers relief to industrial units across Maharashtra operating in MIDC areas, where MBMC had previously sought to impose property tax based on capital value.
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