The hike was rejected on the grounds of inadequacies in the water distribution system, since it was still incomplete, people living in the fringe areas still suffer due to inadequate water supply.

The civic administration's proposal to collect a flat rate of Rs 750 from old properties having Annual Rateable Value (ARV) of Rs 1 to 2,000 was also rejected.

The GB amended the proposal bringing down the tax rate to Rs 550. The decision has been taken to reduce the disparity in the general taxes collected from old and new properties. Speaking to press reporters on Thursday, mayor Rajlaxmi Bhosale said that the rate was brought down to Rs 550 as the higher rate would be burdensome to lower income families.

Around 1,30,000 properties will be affected due to the decision. The property tax rates for all other properties have remained unchanged.