The Bombay High Court on Wednesday struck down certain rules enacted by the Brihanmumbai Municipal Corporation (BMC) for assessment of capital value of a property, based on which property tax could be levied. The high court said all assessments and bills issued under these rules stand quashed.

A division bench of justice Abhay Oka and justice Riyaz Chagla, however, upheld the constitutional validity of the 2009 amendment to the Maharashtra Municipal Corporation Act that had changed the levying of property tax basis in Mumbai from rateable value on standard rent to capital value. "Rules 20, 21 and 22 of the Capital Value Rules of 2010 and 2015 are struck down as they are ultra vires to the Corporation Act. All assessments and bills issued under these rules stand quashed and set aside," the bench said in its order.