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2021 (4) TMI 1336 - MADRAS HIGH COURTSeeking exemption from payment of property tax - Charitable Hospital - seeking allotment of lands, for the purpose of setting up of hospital offering free / concessional medical services - HELD THAT:- The General meaning for the word “Charity” is generosity and helpfulness, especially towards the needy or suffering. An institution engaged in relief of the poor, charitable organization is dedicated to the General Public purpose, more specifically, for the benefit of needy people, who cannot pay for benefits received. The charitable institution does not distribute earnings for the benefit of private individuals. Thus, the character of a Charitable institution must be considered with reference to the facts and circumstances as well as the manner, in which, such institutions are being run by such trust or person. In the present case, the learned counsel for the petitioner made a submission that a holistic approach is required. Equally such a holistic approach is imminent for Revenue also. Thus, the holistic approach towards the institution alone would result in neutralizing the provisions of the Act more specifically, regarding property tax. The exemptions are exceptions and to be granted discreetly, if the applicant is capable of establishing that they are providing medical services dominantly to the poor, needy and deserving people of the society. This Court is of the strong opinion that it is for the charitable institution to establish the facts and circumstances. In the present case, the petitioners have provided some data, showing that they are providing medical services to the poor, needy and deserving people. On perusal of the official website of the petitioner/Sundaram Medical Foundation, the same would reveal that “Sundaram Medical Foundation was established in 1990 by Dr.S.Rangarajan with the help of M/s.Sundaram Finance Group of Companies as a Community Centred Hospital, following the best tradition of medical service. Dr.Rangarajan's vision was to provide Quality Health Care which is cost-effective and community centred - Based on the inspection, the Corporation Officials formed an opinion that the petitioner/Sundaram Medical Foundation is not doing charitable services so as to grant exemption from payment of property tax. Thus, irrespective of the fact whether the petitioner is accepting the rates for hospital wards at Sundaram Medical Foundation published by www.medifee.com is correct or incorrect, the very facts regarding the inspection conducted by the Corporation Officials and their findings would show that there is no free access to the poor, needy and deserving patients in the petitioner/Hospital and the charges collected are also competitive and on higher side - it cannot be construed as if the petitioner is providing medical treatment at free of cost to the large number of poor, needy and deserving patients. There is a clear indication that the medical services is to be provided largely and predominantly to poor, needy and deserving people alone. When such a character is missing, then the writ petitioner Foundation is not entitled to get exemption. During the inspection, it is found that the petitioner is providing treatment to rich and affluent, but certainly not at concessional rate - the petitioner is not entitled to avail the benefit of property tax exemption under Section 101(e) of the Chennai City Municipal Corporation Act. Petition dismissed.
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