The Times of India               07.05.2013

Lucknow Municipal Corporation mulls steep hike in rentals of old properties

The proposal might get a final nod in the executive body meeting to be held on Tuesday at LMC head office in Lalbagh.

The most-affected people would be the ones who are second-hand owners and took possession of these rented properties from the original owners without getting it officially registered with LMC.

Such unofficial transfers of rented properties on mutual basis without bringing it in the knowledge of the corporation is termed illegal as the secondary owners are liable to pay a one-time mutation fee depending on the type of the property and also relationship to the owner.

The proposal could give a major heartache to many such people who have been comfortably living in LMC properties by evading the mutation fee and nominal rent. The proposal, if passed, may give a major boost to the revenues of the otherwise cash-strapped corporation.

A similar proposal was initiated way back in 2001 where the LMC had proposed increment in the monthly rental value up to 40 times and also a standard amount as the mutation fee. The proposal had received much flak in the LMC House during that time as nobody was happy with the increased amount.

However, proposal to set the standard of mutation fee for different types of owners was approved and has been continuing since.

Now, LMC feels that since rentals have become sky high over past 12 years, the standard for mutation fee should also be revised accordingly (based on present DM circle rate which is revised every two years). LMC officials claim that the proposal would affect those people more who have not bothered to deposit the mutation fee till date.

As per 2001 policy, the blood relatives or legal heirs who have taken possession of rented properties from original owners are liable to pay between Rs 15,000-20,000 as mutation fee in case of residential properties. For commercial properties, they would pay Rs 60,000 for shops in prime locations like Hazratganj, Lalbagh, Aminabad, Kaiserbagh, Charbagh etc., while Rs 40,000 for other areas.

Similarly, occupiers other than legal heirs would have to pay Rs 30,000-40,000 for residential properties and Rs 1,20,000 for commercial properties in the above mentioned prime locations, while Rs 80,000 for shops in other areas.

Officials claim that it is the illegal occupiers who would be troubled the most as they have to pay a really hefty amount as compared to blood related kith and kin. As per LMC records, there would be more than 200 such properties.

LMC has maximum number of rented properties in areas like Aminabad, Mahanagar, Charbagh, Aishbagh, Kaiserbagh, Niralanagar etc.

The proposal, if passed, may increase the rentals of properties up to about 8-10 times which could enhance LMC's revenues manifolds.