Elante Mall challenges Chandigarh MC property tax, fire cess before High Court

The Punjab and Haryana High Court has issued notices to the Chandigarh Municipal Corporation and the Chandigarh Administration on a petition filed by CSJ Private Limited, owner and developer of Nexus Elante Mall, challenging property tax notices issued by the Municipal Corporation.

The mall filed the petition before the High Court challenging the Property Tax and Fire Cess Demand Notice dated April 1, 2018, issued by the Joint Commissioner, Municipal Corporation, Chandigarh, and an order dated August 4, 2025, passed by the Divisional Commissioner, Municipal Corporation, Chandigarh, which dismissed its appeal and upheld the property tax and fire cess demand for the financial year 2018-19.

CSJ Private Limited stated that it has been regularly paying property tax under the Self-Assessment Scheme of Property Tax on Commercial, Industrial, and Institutional Lands and Buildings in Chandigarh since 2007-08.

For the financial year 2018-19, a demand of Rs 58,45,439 was raised under Section 101 of the Punjab Municipal Corporation Act, 1976 (as extended to UT Chandigarh) via an order dated April 1, 2018. The petitioner deposited the amount under protest on May 19, 2018, and filed detailed objections on May 22, 2018, seeking correction of the assessment, refund of excess tax, and application of vacancy rebate. No response was received.

The petitioner argued that the demand wrongly included public circulation and passage areas, service areas, basements used for parking, lifts, staircases, restrooms, and fuel-storage facilities within the built-up area — contrary to the Self-Assessment Scheme, which excludes “passages meant for public use.” Such inclusion is ultra vires Section 98(1) of the Punjab Municipal Corporation Act, 1976.

The petition also cited the 2005 Conversion Scheme and the Chandigarh Administration Notification dated October 16, 2008, which exclude parking, service floors, ramps, lift rooms, ducts, and basements (used for parking/storage) from FAR calculation. Non-revenue-generating areas, the company argued, cannot be taxed as “built-up areas.”

CSJ Pvt Ltd has sought quashing of both the demand notice/order dated April 1, 2018, and the appellate order dated August 4, 2025, along with directions for a refund of excess property tax and fire cess deposited under protest, with interest.

It also prayed for quashing of the Self-Assessment Scheme to exclude non-revenue areas and provide the statutory two-thirds vacancy rebate as per Bye-Law 10(iii).

After hearing the arguments, Justice Deepak Sibal and Justice Lapita Banerji adjourned the case to February 19, 2026, issuing notices to the UT Administration and the Municipal Corporation, Chandigarh, for filing their replies.