Tuesday, February 24, 2026

Municipal Law — Municipal Corporations Act, 1955 — Section 212 — Levy of Vacant Land Tax (VLT) — Land earmarked as Residential-cum-Recreational (Park) in Master Plan — Conversion of land use subsequently approved — Whether VLT leviable for period prior to conversion — Held, No — When land is reserved in Master Plan and owner is incapacitated from putting land to beneficial use, levy of VLT is without jurisdiction — Special Notice set aside.

advocatemmmohan

Municipal Law — Municipal Corporations Act, 1955 — Section 212 — Levy of Vacant Land Tax (VLT) — Land earmarked as Residential-cum-Recreational (Park) in Master Plan — Conversion of land use subsequently approved — Whether VLT leviable for period prior to conversion — Held, No — When land is reserved in Master Plan and owner is incapacitated from putting land to beneficial use, levy of VLT is without jurisdiction — Special Notice set aside.

A. Vacant Land Tax — Scope under Section 212 — Para 13

Vacant Land Tax can be levied only where land is capable of being used by the owner and falls within the statutory definition of “vacant land.” If statutory or planning restrictions incapacitate the owner from beneficial use, levy requires strict scrutiny.

B. Land Reserved for Recreational (Park) Use — Effect — Paras 19 & 20

Where land is earmarked as residential-cum-recreational (Park) in Master Plan, owner cannot independently utilize or alienate the property contrary to zoning restrictions. Until conversion of land use is granted, owner remains legally disabled from commercial or alternative exploitation.

Levying VLT for such restricted period is unjustified.

C. Conduct of Municipal Authority — Contradictory Stand — Paras 16, 21

Where Municipal Corporation itself:

Forwarded proposal for change of land use,
Demanded processing fee for conversion, and
Acted upon approval granted by planning authority,

it cannot subsequently contend that no material exists to show reservation for recreational use.

D. Jurisdictional Error — Para 22 & 23

Demand of VLT for period 2013–2016, when land was earmarked for recreational purposes and conversion was granted only on 08.06.2018, is without jurisdiction and liable to be set aside.

GIST OF THE CASE

The petitioner challenged Special Notice dated 22.03.2017 demanding Vacant Land Tax (VLT) for the years 2013–2016 in respect of land admeasuring 14,990 sq. yards at Mogalrajapuram, Vijayawada.

Petitioner contended:

Part of the land was earmarked as residential-cum-recreational (Park) in Master Plan.
He sought conversion to commercial use in 2015.
Municipal authorities processed the request and demanded processing fee.
Conversion was approved by Commissioner, APCRDA on 08.06.2018.
Until conversion, land could not be commercially exploited.

Respondent Corporation contended that VLT was leviable under Section 212 of the Municipal Corporations Act, 1955.

The Court held:

Reservation under Master Plan restricted petitioner’s use.
Petitioner was legally incapacitated from utilizing land.
Levy of VLT for period prior to conversion was unjustified.
Municipal stand in counter was inconsistent with official records.

PRINCIPLE LAID DOWN

Where land is reserved under Master Plan for recreational/public use and owner is precluded from putting it to beneficial use, levy of Vacant Land Tax for such restricted period is without jurisdiction.

DISPOSITION

Special Notice No.26/C3/2016-2017/2 dated 22.03.2017 set aside.
Writ Petition allowed.
No order as to costs.
Pending miscellaneous petitions closed.

ADVOCATEMMMOHAN