The Times of India 12.10.2010
Shop rentals at NMC markets to be fixed using ready reckoner
NAGPUR: Instead of increasing the rentals for shops or 'galas' in local markets and the license fee by 10% every year, NMC's market committee headed by Alka Dalal has proposed to revise the fee and rental for each shop for a period of two, three or five years as per the ready reckoner of town planning department for 2010.
This proposal was discussed at length in the last meeting convened by the committee in July and is now awaiting a nod from the general body. The license fee and rentals have not been revised for over 40 years now, Dalal said.
At present, the NMC hikes the license fee and rentals every year by 10% but the process of renewal is cumbersome and time-consuming as the files remain pending with officials for months on end. "We surveyed nearly 50 markets in the city and found a vast disparity among the rentals charged at different areas. We have proposed that the rentals and license fees for the shops within the markets should be determined for every financial year on April 1 as per the ready reckoner. This will not only benefit the NMC but also reduce the burden on officials since valuation of the property every year is very time-consuming," Dalal added.
Giving the example of Gokulpeth market in Dharampeth zone, she said, "A khasra admeasuring 120 sq feet is charged only 331 as license fee as per the current rate of 2.76 per sq foot. The rate as per the town planning rate for 2010-11 is 19.32. When calculated, the fee amounts to 2,318, thus resulting in an increase of Rs 1,987. The same fee will increase to Rs 2781 after three years."
The fee should again be revised as per the ready reckoner in the year 2017 after a period of six years, as suggested by the committee. This, however, is not the case in some of the less commercial and posh areas like the Sadar Link Road in zone no. 10 where the fee is much higher than NMC rates. The monthly license fee for a khasra measuring 150 sq feet in Sadar Link Road market is 2,904 which should be only 1,895 as per the town planning in 2010. The owners are paying 1,009 excess, she explained.
In such cases, the higher rate for 2009 should be accepted as the standard and rates revised accordingly. The shop or 'gala' owners will also have to procure a no objection certificate from the NMC in case of transfer of license, as per the proposal. This revision will not help raise the NMC revenue but will also benefit the shop keepers, the committee members feel. "We wish to give the markets a new, clean look altogether," Dalal added.
This proposal was discussed at length in the last meeting convened by the committee in July and is now awaiting a nod from the general body. The license fee and rentals have not been revised for over 40 years now, Dalal said.
At present, the NMC hikes the license fee and rentals every year by 10% but the process of renewal is cumbersome and time-consuming as the files remain pending with officials for months on end. "We surveyed nearly 50 markets in the city and found a vast disparity among the rentals charged at different areas. We have proposed that the rentals and license fees for the shops within the markets should be determined for every financial year on April 1 as per the ready reckoner. This will not only benefit the NMC but also reduce the burden on officials since valuation of the property every year is very time-consuming," Dalal added.
Giving the example of Gokulpeth market in Dharampeth zone, she said, "A khasra admeasuring 120 sq feet is charged only 331 as license fee as per the current rate of 2.76 per sq foot. The rate as per the town planning rate for 2010-11 is 19.32. When calculated, the fee amounts to 2,318, thus resulting in an increase of Rs 1,987. The same fee will increase to Rs 2781 after three years."
The fee should again be revised as per the ready reckoner in the year 2017 after a period of six years, as suggested by the committee. This, however, is not the case in some of the less commercial and posh areas like the Sadar Link Road in zone no. 10 where the fee is much higher than NMC rates. The monthly license fee for a khasra measuring 150 sq feet in Sadar Link Road market is 2,904 which should be only 1,895 as per the town planning in 2010. The owners are paying 1,009 excess, she explained.
In such cases, the higher rate for 2009 should be accepted as the standard and rates revised accordingly. The shop or 'gala' owners will also have to procure a no objection certificate from the NMC in case of transfer of license, as per the proposal. This revision will not help raise the NMC revenue but will also benefit the shop keepers, the committee members feel. "We wish to give the markets a new, clean look altogether," Dalal added.
