UT slashes collector rates

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, September 12

Giving a major relief to residents, the Chandigarh Administration has reduced the collector rates of commercial properties by 10 per cent while a 5 per cent reduction has been made in the case of residential properties.

The decision to reduce the rates will provide the much-needed respite to residents as the Estate Office will decide the new rates for the conversion of properties from leasehold to freehold on the basis of the collector rates. While allowing the conversion, the Administration had made it clear that the new rates of conversion would be fixed on the basis of the collector rates. Following this, a hue and cry was raised by various organisations, which demanded that the collector rates be reduced. The Administration started the process to reduce the rates after the matter was taken up by Kirron Kher, MP, who wrote to the Administrator to reduce the collector rates and the conversion charges.

Sources said a 10 per cent reduction had been made in the case of all commercial properties (SCOs) in Sector 17, SCFs (bay shops) in Sector 26 and Madhya Marg, sub-city centre, Sector 34, Sector 22 and roads dividing Sector 34 and 35. A 5 per cent reduction in the collector rates has been made in the case of all types of booths.

A 5 per cent reduction has been approved for all types of residential properties, including houses constructed by the Chandigarh Housing Board. No change in the collector rates has been made in the case of plots in the Industrial Area, Phase I, Industrial Area, Phase II, coal depot, chakki sites, iron market, timber market, Transport area, motor market complex, Shivalik Enclave SCOs and Milk Colony, Dhanas.

Last time, the UT Administration had reduced the collector rates of both commercial and residential properties by up to 20 per cent in January 2016.

Zone-wise rates

The collector rate is the minimum rate at which a property is registered. The collector rate of SCOs in Sector 17 has been slashed from Rs 6,48,648 per sq yard to Rs 5,83,783 per sq yard.

The collector rate of SCOs on Madhya Marg and in Sector 22, 34 and 35 has been reduced from Rs 4,63,320 per sq yard to Rs 4,16, 988 per sq yard. In residential areas, the rates have been slashed by up to 5 per cent in all three zones — Sector 1 to 12 (zone I), Sector 14 to 37 (zone II) and Sector 38 onwards (zone III). The rate in zone I has been reduced from Rs 82,368 per sq yard to Rs 78,250 per sq yard, in zone II, the rate has been reduced from Rs 78,250 per sq yard to 74,337 and for zone III, the rate has been reduced from Rs 74,131 per sq yard to Rs 70,424 per sq yard.

Sources in the Administration said the reduction in the collector rates was likely to benefit the Administration as there would be more transactions, which would ultimately generate more revenue for it. Various organisations of traders, property owners and industrialists had been seeking a reduction in the collector rates on the grounds that the prevailing collector rates in the city were the highest in comparison to neighbouring cities.