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Municipal law

(Querist) 07 October 2009 This query is : Resolved 
Sir,
Whether municipality can let out a shop on a condition that, Person shall deposit non refundable Rs 30000/-, and there after pay Rs 500/- monthly as rent. In my case municipality has allotted a small shop In U.P. with such a condition. My client has paid Rs 10000/- as first premium and given written consent to pay rest Rs 20000/- later. My client is regularly paying Rent Rs 500 monthly also. Now my client is not ready to pay rest amount Rs 20000/-, but ready to pay monthly rent.Municipality is trying to recover this Rs 20000/- as land revenue. Whether municipality can impose such a condition like " Pagari", and recover the same as land revenue. If not please suggest some law or citation. My client belongs to U.P. I think because it does not come within the definition of tax thus municipality can not recover such amount as land revenue. Such practice of municipality is illegal. Please suggest clear law or citation.
Thanks
Kiran Kumar (Expert) 07 October 2009
in my opinion this practice of municipality does not seem to be illegal...pls refer to local municipal laws and concerned rules in this regard...Municipality is not there to do any charity for the public, Municipality has every right to generate revenue from the property being owned by it afterall the shop is made out of public money and the money so recovered will be used for public.

how can we stop municipality from collecting tax?

we have got few lawyers from UP lets c what they find for u.
Raj Kumar Makkad (Expert) 07 October 2009
Mr. Arvind! How a person can resile a written agreement agreed by him at his own sweet will? Tenant has got no legal right to refuse to pay rest of agreed Rs. 20,000/- to the owner of the shop i.e. municipality in the name that Pagdi cannot be recovered or that there is no such concept in the working of municipality. had you not accepted to pay Rs. 30,000/- as non-refundable return, the owner might not have rented out its shop to you so you have got no right to agitate at this stage and owner is free to recover it as per its desire.
Kiran Kumar (Expert) 08 October 2009
i agree with Mr. Makkad, his reply is more practical in nature.

i answered from the LEGALITY point of view, Legality or Validity of concerned rules.

but primarily its a matter of agreement/ contract....its true that how can u resile from such a contract which has been duly signed by both the parties.
Y V Vishweshwar Rao (Expert) 08 October 2009
I Agree with Mr Kiran adn Mr Raj Kumar Makkad

Lease ;- Leae Amount

First Advance Rs;- 30,000-00 as part of Advance Rent for the agreed period and the remaing part as Rs;- 500-00 PM -
no illegality - Payment of Rent in advance or at later stage or by monthly rents / installments - can not be termed as Pagadi/ Pagari - or premium ! - Local Body can receover the agreed amount as part of Rent - under its Agreement terms !


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