MUMBAI: In a significant interim relief for almost 40 developers and landowners in the heart of Central Mumbai, including areas of Parsi Colony Hindu Colony and Matunga , the Bombay high court has directed them to pay municipal property taxes at pre-amended rates.The recent order was in response to a petition filed by Central Mumbai Developers Welfare Association, which has close to 40 affected members.The association challenged the constitutional validity of the amended property tax based on capital value of land as opposed to the earlier rateable value, and also the validity of the higher land under construction (LUC) tax.Theirs is the latest in a series of constitutional challenges raised by property owners and developers to a 2009 amendment of the BMC Act and rules framed in 2010 and 2015 for fixation of capital value of lands and buildings.The rules are void and unconstitutional, said the developers. The capital value of land as the basis for property taxes led to a steep rise, with some owners served a bill running into tens of crores of rupees.The association informed the court that its members had received notices from the civic administration to pay up other additional charges, including for LUC, which ranged from Rs 20-40 lakh. The BMC issued notices to land owners for full payment of LUC taxes, said their lawyer, even though the Supreme Court has said there can only be two categories of taxes—either on land or on building.Senior counsel Milind Sathe, who appeared for the association, said the questions raised were similar to the ones raised earlier this year in another petition filed by Kiyana Ventures LLP and also by Yashoda Cooperative Housing Society.He sought parity, pointing out that in May and August, the HC had granted relief to other developers and land owners. The HC bench observed that the challenges were similar.The court directed “the petitioners to pay municipal property taxes at the pre-amended rates and also the additional taxes at the rate of 50% of the differential tax between the tax payable under the old regime and now payable on the basis of capital value of the property.