Navi Mumbai: The Navi Mumbai Citizens Foundation, alongside various other citizen groups, is calling for the abolition of transfer charges imposed by the City and Industrial Development Corporation (CIDCO), which they label as a “modern-day Jizya tax”.

The demand for the removal of these charges has intensified following a recent Supreme Court ruling in the case of Aspi Chinoy & Anr vs. State of Maharashtra. The ruling, which upheld a Bombay High Court decision, declared that the government has no right to impose transfer charges when no actual transfer of land or building ownership occurs. The court also ordered the government to refund the collected charges with 8% interest per annum.

Despite the Supreme Court’s clear directive, CIDCO continues to impose these charges, leading to widespread criticism. The Navi Mumbai Citizens Foundation and Sahakar Bharati have formally requested CIDCO’s board to eliminate these fees, arguing that they place an undue financial burden on property owners.

The controversy is not new. A 2004 study by Chesterton Meghraj recommended converting leasehold properties to freehold at adjusted rates. CIDCO rejected these recommendations, citing potential financial losses of up to Rs. 34,261 crore if a significant percentage of citizens opted for conversion.

Critics argue that CIDCO has already recouped its costs, as evidenced by surplus figures in its financial statements. “Continuing to impose these charges is unjustifiable”, stated Satish Nikam, President of the Navi Mumbai Citizens Foundation.

The issue is compounded by concerns of double taxation. Since the Navi Mumbai Municipal Corporation (NMMC) took over infrastructure maintenance in 1992, CIDCO’s continued collection of transfer charges is seen as a redundant financial imposition. “CIDCO no longer manages city infrastructure, so why are these fees still being collected?” questioned Pramod Joshi, President of Sahakar Bharati, Navi Mumbai.

Financial reports for the fiscal year 2023-24 project CIDCO will earn Rs. 10,544 crore from plot and flat sales, with transfer charges contributing only Rs. 128 crore to this revenue. Critics argue that abolishing these charges would not significantly affect CIDCO’s financial stability but would offer substantial savings to residents, especially those in urgent need of selling their properties.

The call for the removal of transfer charges has garnered significant support from over 500 cooperative housing societies and the Navi Mumbai Vyapari Mahasangh. Representatives from these groups are scheduled to meet with key officials, including Chief Minister Eknath Shinde, Deputy Chief Minister Devendra Fadnavis, and Housing Development Minister Atul Save, to advocate for the cancellation of these charges. 

“For the people of Navi Mumbai, abolishing these charges would mean significant savings and financial relief,” said Bhaskar Mhatre, Secretary of the Navi Mumbai Co-operative Housing Federation. The movement to end these charges continues to gain momentum as residents and citizen groups remain resolute in their efforts.