UT proposes up to 5-time hike in collector rates

Buying a property in the city is set to get costlier with the UT Administration proposing a steep hike in the collector rates.

After four years, the Administration today issued a draft schedule of collector rates and invited suggestions from the public by March 20. A notification of the final collector rates will be issued by March 25 and the new rates will be applicable from April 1.

The Administration has proposed nearly four times increase in collector rates for residential and nearly five times for commercial rural areas. Nearly 130 per cent hike in collector rates in Sector 1 to 12, nearly 96 per cent in Sector 14 to 37 and nearly 80 per cent in Sector 38 and onwards has been proposed.

According the draft, the collector rates have been increased by nearly 30 per cent in the Industrial Area, Phase I and II, and by 20 per cent for SCOs, SCFs, bay shops on Madhya Marg, Sub-City Centre, Sector 34, Sector 22 and the road separating Sector 35 and 34. Simillarly, the collector rates for agriculture land have been enhanced by nearly 2.5 times. Minor changes in the rates have been made in the case of shops, offices in Elante Mall and sites in the IT Park. The collector rates were last revised in April 2021.

An official said the collector rates were proposed on the basis of sale deeds registered in the Sub-Registrar Office as well as the survey of market and villages.

Opposing the hike, Naveen Manglani, vice-president, Chamber of Chandigarh Industries, said the administration’s proposed collector rates were a recipe for disaster.

“The proposed collector rates, which include a 33% revision from Rs 62,599 to Rs 83,000 per square yard in industrial areas, are grossly inflated and out of sync with the actual market rates. This drastic increase will inevitably lead to a slump in sale/purchase transactions of properties, ultimately resulting in reduced revenue for the administration,” he said.

The industrial area, already reeling under the pressure of being leasehold and facing various negative factors, will be further crippled by this ill-conceived move. The administration’s decision will not only hurt property owners but also stifle the local economy, he added.

“We urge the administration to consider and revise the proposed collector rates to reflect the ground reality, ensuring a stable and thriving real estate market,” he said.

Opposing the proposed hike, newly appointed Chandigarh Beopar Mandal president Sanjeev Chaddha emphasised that instead of increasing the rates, there was a dire need to reduce these, considering the current economic challenges faced by traders in the city.

Chaddha pointed out that commercial property collector rates had been set excessively high, in some cases even surpassing the actual market value of the properties.

“The business community in Chandigarh is already struggling with multiple issues. Instead of burdening them further, the administration should take steps to resolve their problems,” said Chaddha.

He also warned that the hike in collector rates could push more businesses to shift to Panchkula and Mohali, as many traders have already relocated due to better business conditions there.

Expressing similar sentiments, Jitendra Singh, general secretary of the Chandigarh Property Dealers Welfare Association, said the administration’s decision to drastically increase collector rates could create new challenges for city residents. This move will more than double the cost of purchasing and registering properties, making home-ownership an even more distant dream for the common man.

Calling it a dictatorial step against the public, he stated that people already struggling with inflation would find it impossible to register properties at such high rates.

He questioned whether government officials themselves could afford to buy homes at these exorbitant rates. If not, then what justification is there for imposing such a financial burden on the common people? He condemned the decision as a reckless decree that could paralyse the city’s real estate market and turn home-ownership into an unattainable dream.

Jitendra Singh further argued that this decision violates the constitutional right to housing. He urged the administration to reconsider and withdraw the hike in view of the public’s financial situation.

CM Malhotra, a resident of a cooperative housing society, said in case of cooperative housing societies, the proposed rates are more than 100 percent as compared to the existing rates

“The middle income group residents are in a big shock who have to get their sub conveyance deeds registered. When we calculated, the difference worked out to be more than Rs 3 lakh as compared to the existing rates,” he added.