Beopar Mandal has urged the UT administration to reduce the collector rates and the leasehold-to-freehold transfer cost of property further. Mandal Chairman Charanjeev Singh led a delegation to UT finance secretary Ajoy Kumar Sinha on October 20.
The UT Administration had reduced collector rates recently but by just 10 and 5% in the commercial and residential categories, respectively. Last year, it had reduced the rates by up to 20% in both categories. The collector rate is lowest price for which a property is registered. The administration fixes this rate and revises it every year.
Terming the amount of current reduction as “a joke”, Chandigarh Beopar Mandal adviser Kamaljit Singh Panchi said the meagre relief was of no use. “The administration dashed the hopes of the city residents by reducing the collector rates by a small percentage. The rates should be reduced further to bring these on a par with the figure in Panchkula and Mohali,” Panchi said.
In addition to collector rates, buyers also have to pay a stamp duty of 3% and Rs 1,500 per square yard as construction charges. The present collector rates in many areas of the city are higher than the actual property price, disproportionately. In the Industrial Area, the market price of a plot is about Rs 50,000 for each square yard, while the collector rate is Rs 65,000. The collector rate of converted industrial plot is Rs 1.50 per square yard, while the market value of the property is about Rs 90,000 per square yard.
The collector rate of 300-square-yard showrooms in Sector 26 is Rs 45 crore, while the actual property price is about Rs 20 crore. In the residential category, the current price of a 1-kanal house in any of the prime locations is about Rs 5 crore, while the collector rate is about Rs 4 crore. The beopar mandal delegation also requested the finance secretary to reduce the proposed rates for the conversion of property from leasehold to freehold.
It was after four years that the UT on August 18 had lifted the embargo on the transfer of residential property from leasehold to freehold. It has calculated the conversion charges on a pro-rata basis (proportionate allocation according to share).
Content Source : Times of India