NDMC set to align with Jan Vishwas Bill
The New Delhi Municipal Council (NDMC) is set to align its enforcement approach with the Centre’s Jan Vishwas (Amendment of Provisions) Bill, 2026, which decriminalises over 1,000 minor offences and signals a shift towards trust-based governance.
The Bill was passed by Parliament on Thursday.
In total, at least 105 provisions linked to fines, penalties and imprisonment have been amended or removed under the NDMC Act through the Bill, along with 47 proposed changes to property taxation, aimed at making the system simpler, transparent, and citizen-friendly.
The NDMC on March 30 said that implementing the Unit Area Method (UAM) introduced by the Bill could reduce property tax by 30 to 50 per cent, particularly benefiting old and self-occupied properties.
The Bill was introduced by Minister of State for Commerce and Industry Jitin Prasada in the Lok Sabha, which proposed multiple changes to the NDMC Act, 1994.
Highlighting the benefits of UAM, NDMC Vice-Chairman Kuljeet Chahal earlier referred to the reduction of about 30 to 50 per cent in property tax in the NDMC area, noting that the age factor will provide relief for older properties, and bifurcation will allow separate assessment of different portions of a property (such as shop and storage).
The Bill further proposes a complete overhaul of the tax structure, specifying that property tax will now comprise two components: building tax and vacant land tax, replacing the earlier Section 61 of the New Delhi Municipal Act, 1994.
NDMC’s tax collection stood at Rs 1,045 crore last year and is expected to rise to approximately Rs 1,350 crore this year.
The reforms aim to reduce the fear of criminal action for minor and first-time lapses, replacing immediate penalties with warnings and encouraging voluntary compliance among citizens and businesses.
For the NDMC area, which is home to the nation’s political capital and high-profile residents, the shift could translate to fewer punitive actions for minor violations such as documentation gaps or procedural delays.
Officials indicated that the emphasis will now be on giving violators an opportunity to rectify mistakes before penalties are imposed.
Under the framework, first-time and minor offences will invite warnings instead of prosecution, while penalties, where necessary, will be proportionate to the severity of the violation to ensure balanced enforcement.
Key Highlights: Jan Vishwas (Amendment) Bill & NDMC Reforms
Core Governance Shift
- Trust-Based Approach: Moves from punitive enforcement to a “facilitative environment” by decriminalising minor offences
- Compliance First: Replaces immediate criminal action with warnings for first-time or minor lapses (e.g., documentation gaps)
- Legal Relief: Over 1,000 minor offenses decriminalised nationwide; 105 provisions amended or removed specifically within the NDMC Act
Major Property Tax Overhaul
- Introduction of UAM: Implementation of the Unit Area Method (UAM) for tax calculation.
- Significant Savings: Expected 30% to 50% reduction in property tax, specifically benefiting old and self-occupied properties
- New Tax Structure: Property tax now bifurcated into two components:
1. Building Tax
2. Vacant Land Tax
- Fairer Assessment: New “age factor” relief for older buildings and separate assessments for different property uses (eg shop vs storage)
Enforcement & Penalties
- Decriminalisation Stats:
- 86 provisions converted from fines to penalties
- 16 provisions saw fines completely removed
- Imprisonment clauses replaced by financial penalties
- Section 370A: A new provision allowing authorities to issue warnings or remedial requests for 17 categories of offenses before penalising
- Dynamic Fines: Penalties will be periodically revised to stay relevant and effective
Economic & Administrative Impact
- Revenue Growth: Despite tax cuts for individuals, NDMC tax collection is projected to rise from Rs 1,045 crore to Rs 1,350 crore this year through better compliance
- Streamlined Disputes: New adjudicating officers and appellate authorities to resolve grievances faster and reduce the burden on courts
