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Case Law Details

Case Name : Kandivali Cooperative Industrial Estate Vs Municipal Corporation of Greater Mumbai and others (Supreme Court of India)
Appeal Number : Civil Appeal No. 1431 of 2015
Date of Judgement/Order : 04/02/20215
Related Assessment Year :
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Kandivali Cooperative Industrial Estate Vs Municipal Corporation of Greater Mumbai and others (Supreme Court of India)

The case study examines the Trade Refuse Charges (TRC) collected by the Brihanmumbai Municipal Corporation (BMC) in Mumbai, India. The BMC charges and collects TRC from businesses within its municipal area based on a circular. However, several trade associations and business units have challenged the validity of this practice, leading to legal proceedings in the Supreme Court and Bombay High Court. The Supreme Court has expressed concerns over the arbitrary 10% annual increase in TRC without considering the nature of the business or providing a reasonable opportunity for a hearing. The Bombay High Court has indicated that if it is determined that the TRC is not payable, it should be refunded by the BMC. The key question revolves around whether the BMC’s collection of TRC solely based on a circular is justifiable.

BMC, vide its circular number CHE/17785/SWM dated 14.01.2008 has been charging and collecting Trade Refuse Charges (TRC) from those who are carrying out business in whatever manner. To simply put, TRC means and includes garbage (refuse) generated in a business unit located within the BMC municipal area.  Basic principle behind this is,  since the garbage is generated by a business unit, this becomes a form of revenue for BMC. TRC is charged and collected by BMC every year when a business unit renews its Health license or any other license. BMC increases TRC by 10% every year while there is no such increase for renewing Health license or any other license of a business unit.

BMC has a long list (128) of various types businesses being carried out in its municipal limits and may have added few more in recent years.

Since BMC has been charging TRC just on the basis of its circular referred above (and amendments made thereto)  few trade associations/business units have moved Supreme Court and/or The Bombay High  Court seeking justice.

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