**Executive Summary**
This document is the English translation of the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships (Second Amendment) Ordinance, 2025 (Mah. Ord. II of 2025), promulgated by the Governor of Maharashtra on April 30, 2025. The ordinance amends the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965, to allow Councils to grant rebates on property tax penalties. The ordinance comes into force immediately.
**Key Points / Main Content**
* **Ordinance Details:**
* The ordinance is called the "Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships (Second Amendment) Ordinance, 2025."
* It is Ordinance No. II of 2025.
* The ordinance comes into force immediately.
* **Amendment to Section 150A of the Act:**
* A new proviso is inserted before the existing proviso in sub-section (1) of section 150A of the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965.
* The new proviso states: "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,".
* **Statement of Purpose**
* The ordinance aims to address the issue of increasing property tax penalties that exceed the principal tax amount, leading to non-payment.
* It enables Councils, with State Government approval, to grant rebates on penalties to encourage property owners to pay arrears.
* The ordinance is being promulgated because the State Legislature is not in session, necessitating immediate action.
**Impact Analysis**
**Stakeholder:** Municipal Councils and Nagar Panchayats
* **Impact:** Gaining the ability to offer rebates on property tax penalties with State Government approval.
* **Action Required:** To seek approval from the State Government before granting any rebate in penalty to any person or class of persons primarily liable for payment of property taxes
**Stakeholder:** Property Owners
* **Impact:** Potential opportunity to receive rebates on penalties associated with unpaid property taxes.
* **Action Required:** Monitor for announcements regarding the Council's implementation of the rebate program and eligibility criteria.
Key Entities Referenced
Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships Act, 1965: The principal act being amended, governing local government structure and taxation.
Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships (Second Amendment) Ordinance, 2025: Ordinance amending the 1965 Act, specifically regarding property tax penalties.
Constitution of India: Reference to article 348 and 213, providing the legal basis for the ordinance.
Urban Development Department: The state government department responsible for issuing the ordinance.
Mumbai: Location where the ordinance was issued.
RNI No. MAHENG /2009/35528
महाारााष्ट्रट शाासन रााजपत्र
असाधााराण भााग आठ
वर्षष ११, अंक १६] बुुधावारा, एप्रि�ल ३०, २०२५/वैशााख १०, शाके १९४७ पष्ृठ े3, प्रिकमं त : रुपये े२७.००]
असाधााराण क्रमांक ४२
�ाप्रिधाकृत �काशान
महाारााष्ट्र प्रिवधाानमंडळााचेे अप्रिधाप्रिनयेम व रााज्येपालांनी �ख्येाप्रिपत केलेले अध्येादेेशा व केलेले
प्रिवप्रिनयेम आप्रिण प्रिवप्रिधा व न्येाये प्रिवभाागाकडून आलेली प्रिवधाेयेके (इंंग्रजी अनुवादे).
In pursuance of clause )3( of article 348 of the Constitution of India, the following translation
in English of the Maharashtra Municipal Councils, Nagar Panchayats and Industrial Townships
)Second Amendment( Ordinance, 2025 )Mah. Ord. II of 2025(, is hereby published under the authority
of the Governor.
By order and in the name of the Governor of Maharashtra,
SATISH WAGHOLE,
Secretary )Legislation( to Government,
Law and Judiciary Department.
[ Translation in English of the Maharashtra Municipal Councils, Nagar Panchayats and
Industrial Townships )Second Amendment( Ordinance, 2025 )Mah. Ord. II of 2025(, published under
the authority of the Governor].
URBAN DEVELOPMENT DEPARTMENT
Mantralaya, Madam Cama Marg, Hutatma Rajguru Chowk,
Mumbai 400 032, dated the 30th April 2025.
MAHARASHTRA ORDINANCE No. II OF 2025.
AN ORDINANCE
further to amend the Maharashtra Municipal Councils, Nagar Panchayats
and Industrial Townships Act, 1965.
WHEREAS both Houses of the State Legislature are not in session;
AND WHEREAS the Governor of Maharashtra is satisfied that
circumstances exist which render it necessary for him to take immediate action
Mah. XL further to amend the Maharashtra Municipal Councils, Nagar Panchayats and
of 1965. Industrial Townships Act, 1965, for the purposes hereinafter appearing;
)१(
भाग आठ- ४२-१2 महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग आठ, एप्रि�ल ३०, २०२५/वैशााख १०, शाके १९४७
NOW, THEREFORE, in exercise of the powers conferred by clause )1( of
article 213 of the Constitution of India, the Governor of Maharashtra is hereby
pleased to promulgate the following Ordinance, namely :—
Short title and 1. )1( This Ordinance may be called the Maharashtra Municipal Councils,
commencement. Nagar Panchayats and Industrial Townships )Second Amendment( Ordinance,
2025.
)2( It shall come into force at once.
Amendment of 2. In section 150A of the Maharashtra Municipal Councils, Nagar Mah. XL
section 150A Panchayats and Industrial Townships Act, 1965, in sub-section )1(,— of 1965.
of Mah. XL of
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.PB
महाारााष्ट्रट शाासन रााजपत्र असाधााराण भााग आठ, एप्रि�ल ३०, २०२५/वैशााख १०, शाके १९४७ 3
STATEMENT
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 is 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 amount
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 is no provision to grant exemption of
penalty on property taxes in the said Act. It is, 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 are not in session and the
Governor of Maharashtra is satisfied that circumstances exist which render 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, this Ordinance is promulgated.
Mumbai, C. P. RADHAKRISHNAN,
Dated the 30th April 2025. Governor of Maharashtra.
By order and in the name of the
Governor of Maharashtra,
DR. K. H. GOVINDA RAJ,
Principal Secretary to Government.
ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY DIRECTOR,
RUPENDRA 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.