The Times of India 07.05.2013
Lucknow Municipal Corporation mulls steep hike in rentals of old properties
properties of Lucknow Municipal Corporation which were rented out to
people on a nominal rent may soon undergo some radical revision with the
civic agency planning to revise rentals on the basis of the current
district magistrate (DM) circle rate. There are 2,000-odd such
properties in the city, both residential and commercial that would come
under the scanner once the new system is applicable.
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.
