High Court: no coercive tax recovery from four Kalmeshwar MIDC units for 12 weeks

Four industrial units in the Kalmeshwar industrial area (MIDC) in Nagpur have got interim relief from the High Court. Property tax had been demanded from the units, and they had filed separate petitions challenging the demand.

The petitions were filed by M/s Essap India Limited, M/s Superfine Minerals, M/s Micromesh Minerals and Metals, and M/s Wonder Commercial Private Limited. A bench of Justice Anil Kilor and Justice Rajnish Vyas heard the case.

The bench asked that the petitions be treated as representations, and directed the local bodies to decide them in accordance with law within 12 weeks. The matter will thus go before the local bodies for a decision rather than being decided directly by the court.

The court also made it clear that until a final decision is taken on the representations, the authorities must not take any coercive or punitive action to recover tax from the petitioners. The order brings major relief to the units that were under heavy pressure from the property tax demand.

The petitioners' counsel argued that a coordinate bench of the High Court had delivered a judgment on August 5, 2026 in 'The Badlapur Industrial Welfare Association and Others v. State of Maharashtra and Others'. According to the counsel, under that judgment and the settled legal principles in the Supreme Court's Small Scale Entrepreneurs Association and Others v. State of Maharashtra and Others, local bodies have no legal authority to levy property tax in an MIDC area.

Taking note of these arguments, the court told the local body to treat the petitions as representations and give the affected parties a hearing. A decision is then to be taken within 12 weeks in the light of the judicial decisions cited above.

As per the court's clear order, no punitive or coercive recovery action can be taken until the local bodies take a final decision on these petitions or representations in accordance with the rules. The industries fighting the legal battle have for now got protection, and their hopes of justice have also risen.