Court held that when the property is purchased by the Central Government as per section 269UD(1) of the  Act  the lease hold right in property is in possession of Central Government   it is the liability of the Central Government to pay Municipality taxes on property.  However under article 285(1) of the Constitution of India, the property of the Union, shall, save in so far as Parliament may by law otherwise provide, be exempt from all taxes imposed by a State or by any authority within a State. Thus, the taxes and charges levied by the Mumbai Municipal Corporation on the suit premises would fall within the ambit of the taxes by a local authority, provided it was held that the suit premises were the property of the Union of India. The question whether the leasehold interest which the Union of India had acquired in the suit premises, by virtue of the provisions contained in section 269UD(1) of the Act qualified for exemption under article 285(1) of the Constitution of India, could not be examined in this proceeding, especially in the absence of the Municipal Corporation, which had levied the taxes.. Thus it was necessary to modulate the relief in such a way that the defendants got an opportunity to pursue their stand that the suit premises were exempt from payment of taxes, with the municipal authorities and in the event of failure to obtain a favourable order of exemption, direct the defendants to pay the municipal taxes and charges, as accumulated up to date, and continue to pay them as they fell due till the disposal of the suit.