**Executive Summary**
This document publishes L. A. BILL No. LXII OF 2025, titled the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships (Sixth Amendment) Act, 2025. The bill, introduced in the Maharashtra Legislative Assembly on June 30, 2025, aims to amend the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965. The Act is deemed to have come into force on April 30th, 2025, and will replace the previously promulgated Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships (Second Amendment) Ordinance, 2025.
**Key Points / Main Content**
* **Short Title and Commencement:**
* This Act is called the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships (Sixth Amendment) Act, 2025.
* It is deemed to have come into force on April 30th 2025.
* **Amendment to Section 150A of the 1965 Act:**
* Before the existing proviso in subsection (1) of section 150A, the following proviso is inserted: "Provided that, the Council may, with the approval of the State Government, grant rebate in penalty to any person or class of persons primarily liable for payment of property taxes :".
* In the existing proviso, the words "Provided that" are replaced with "Provided further that".
* **Repeal and Saving:**
* The Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships (Second Amendment) Ordinance, 2025, is repealed.
* Actions taken under the repealed Ordinance are considered valid under the corresponding provisions of the principal Act, as amended by this Act.
**Impact Analysis**
**Stakeholder: Maharashtra Municipal Councils and Nagar Panchayats**
* **Impact:** Given the authority, with State Government approval, to grant rebates in penalties for property taxes.
* **Action Required:** Implement the amended provisions regarding penalty rebates, including seeking State Government approval for rebate grants.
**Stakeholder: Property Owners in Maharashtra**
* **Impact:** Potentially benefit from rebates on property tax penalties, reducing their overall tax burden.
* **Action Required:** Monitor announcements from Municipal Councils and Nagar Panchayats regarding the availability of penalty rebates and apply accordingly.
**Stakeholder: State Government of Maharashtra**
* **Impact:** Required to review and approve rebates granted by Municipal Councils and Nagar Panchayats.
* **Action Required:** Establish procedures for reviewing and approving rebate requests from Municipal Councils and Nagar Panchayats.
Key Entities Referenced
Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965: The principal Act being amended by this bill. Deals with property taxes and related matters for municipal councils, nagar panchayats, and industrial townships in Maharashtra.
Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships (Sixth Amendment) Act, 2025: The short title of the Act resulting from this Bill. Amends the 1965 Act regarding property taxes and related matters.
Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships (Second Amendment) Ordinance, 2025: The Ordinance that this Act is intended to replace. Deals with amendments to the 1965 Act.
Rule 117 of the Maharashtra Legislative Assembly Rules: Rule under which the Bill is being published in the Maharashtra Legislative Assembly.
Section 150A of the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965: The specific section of the Act being amended, related to property tax penalties.
RNI No. MAHBIL /2009/40123
महाारााष्ट्र� शाासन रााजपत्र
असाधााराण भााग पाच-अ
वर्षष ११, अंक ९(३)] सोमवारा, जून ३०, २०२५/आर्षाढ ९, शाके १९४७ [पष्ृठे े३, किंकमं त : रुपये े३६.००
असाधााराण क्रमांक १५
प्रााकिंधाकृत प्राकाशान
महाारााष्ट्र किंवधाानसभाेत व महाारााष्ट्र किंवधाानपरिरार्षदेेत सादेरा केलेेलेी किंवधाेयेके (इंंग्रजी अनुवादे).
MAHARASHTRA LEGISLATURE SECRETARIAT
The following Bill was introduced in the Maharashtra Legislative Assembly on the 30th June,
2025 is published under Rule 117 of the Maharashtra Legislative Assembly Rules :—
L. A. BILL No. LXII OF 2025.
A BILL
further to amend the Maharashtra Municipal Councils, Nagar Panchayats
and Industrial Townships Act, 1965.
WHEREAS both Houses of the State Legislature were not in session;
AND WHEREAS the Governor of Maharashtra was satisfied that
circumstances existed which rendered it necessary for him to take immediate
Mah. XL action further to amend the Maharashtra Municipal Councils, Nagar Panchayats
of 1965. and Industrial Townships Act, 1965, for the purposes hereinafter appearing;
Mah. and, therefore, promulgated the Maharashtra Municipal Councils, Nagar
Ord. II Panchayats and Industrial Townships (Second Amendment) Ordinance, 2025,
of 2025. on the 30th April 2025;
(१)
भााग पााच–अ-१५-१2 महाारााष्ट्र शाासन रााजपत्र असाधााराण भााग पाच-अ, जून ३०, २०२५/आर्षाढ ९, शाके १९४७
AND WHEREAS it is expedient to replace the said Ordinance by an Act
of the State Legislature; it is hereby enacted in the Seventy-sixth Year of the
Republic of India as follows :-
Short title and 1. (1) This Act may be called the Maharashtra Municipal Councils, Nagar
commencement. Panchayats and Industrial Townships (Sixth Amendment) Act, 2025.
(2) It shall be deemed to have come into force on the 30th April 2025.
Amendment of 2. In section 150A of the Maharashtra Municipal Councils, Nagar Mah. XL
section 150A Panchayats and Industrial Townships Act, 1965 (hereinafter referred to as “the of 1965.
of Mah. XL of
principal Act”), in sub-section (1),—
1965.
(1) before the existing proviso, the following proviso shall be inserted,
namely :—
“Provided that, the Council may, with the approval of the State
Government, grant rebate in penalty to any person or class of persons
primarily liable for payment of property taxes :”;
(2) in the existing proviso, for the words “Provided that,” the words
“Provided further that, ” shall be substituted.
Repeal 3. (1) The Maharashtra Municipal Councils, Nagar Panchayats and Mah.
of Mah. Ord. II
Industrial Townships (Second Amendment) Ordinance, 2025, is hereby repealed.
Ord. II of 2025.
of 2025 (2) Notwithstanding such repeal, anything done or any action taken
and
(including any notification or order issued) under the corresponding provisions
saving.
of the principal Act, as amended by the said Ordinance, shall be deemed to
have been done, taken or, as the case may be, issued under the corresponding
provisions of the principal Act, as amended by this Act.महाारााष्ट्र शाासन रााजपत्र असाधााराण भााग पाच-अ, जून ३०, २०२५/आर्षाढ ९, शाके १९४७ 3
STATEMENT OF OBJECTS AND REASONS
The property taxes are levied by the Municipal Councils and Nagar
Panchayats on lands and buildings or both situated within their areas as per
the provisions of the Maharashtra Municipal Councils, Nagar Panchayats and
Industrial Townships Act, 1965 (Mah. XL of 1965).
2. It was noticed that the property taxes levied by the Municipal Councils
and Nagar Panchayats are not paid by the property owners due to the fact that,
properties are not is use, financial difficulties of the property owners or other
reasons. Section 150A of the said Act provides that, if a person liable to pay
property taxes does not pay the same within specified time limit, then he shall
be liable to pay by way of penalty in addition to the amount of such taxes or part
thereof which has remained unpaid, a sum equal to two per cent. of such tax for
each month or part thereof after the last date. Over the period of time due to non-
payment of taxes within specified time, the amount of the said penalty becomes
more than the amount of the property taxes and the same continues to increase.
Since the amount of the penalty is more than the amou nt of the property taxes
or the amount of the penalty continues to increase, many property owners do
not pay the said arrears of taxes. This adversely affects the tax collection of the
Municipal Council or Nagar Panchayat.
3. Timely recovery of taxes is necessary for providing amenities such as
water supply, sanitation, street lighting, roads, etc. To encourage the property
owners to pay arrears of property taxes, the issue to exempt penalty was under
consideration. However, at present, there was no provision to grant exemption of
penalty on property taxes in the said Act. It was, therefore, considered necessary
to amend section 150A of the said Act, to provide that the Council may, with
the approval of the State Government, grant rebate in penalty to any person or
class of persons primarily liable for payment of property taxes.
4. As both Houses of the State Legislature were not in session and the
Governor of Maharashtra was satisfied that circumstances existed which
rendered it necessary for him to take immediate action further to amend the
Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships
Act, 1965, for the purposes aforesaid, the Maharashtra Municipal Councils,
Nagar Panchayats and Industrial Townships (Second Amendment) Ordinance,
2025 (Mah. Ord. II of 2025), was promulgated by the Governer of Maharashtra
on the 30th April 2025.
5. The Bill is intended to replace the said Ordinance by an Act of the
State Legislature.
Mumbai, EKNATH SHINDE,
Dated the 12th June, 2025. Deputy Chief Minister
(Urban Development).
Vidhan Bhavan, JITENDRA BHOLE,
Mumbai, Secretary-1,
Dated the 30th June 2025. Maharashtra Legislative Assembly.
ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY DIRECTOR,
RUPENDR A DINESH MORE, PRINTED AT GOVERNMENT CENTRAL PRESS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD,
MUMBAI 400 004 AND PUBLISHED AT DIRECTORATE OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATIONS,
21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004. EDITOR : DIRECTOR, RUPENDRA DINESH MORE.