Estate office to mull cut in collector rates
After the SAS Nagar administration decided to reduce collector rates last month, the UT finance department has now asked the deputy commissioner-cum-estate office to consider reduction in these rates.chandigarh Updated: Aug 26, 2014 13:01 IST
After the SAS Nagar administration decided to reduce collector rates last month, the UT finance department has now asked the deputy commissioner-cum-estate office to consider reduction in these rates.
The SAS Nagar administration had reduced the collector rate in new sectors in the district by nearly 20% to encourage the realty market.
The collector rate is the minimum rate at which a property is registered and nobody would be allowed to purchase land and immovable properties in different categories below the rate determined by the administration.
Last year, the Chandigarh administration had enhanced collector rates by upto 50%, which resulted in increase in the rates of property- both commercial and residential.
Various trader associations have been exerting pressure on the administration to reduce the collector rate. UT deputy commissioner Mohammad Shayin had recently called a meeting with the local industrialists and traders to discuss the issue of collector rates.
UT finance secretary Sarvjit Singh said there is the need to bring the collector rate at par with those prevailing in Panchkula and SAS Nagar.
“We have asked the deputy commissioner to study the existing trend and reduce the collector rates accordingly,” said Singh. As per the existing rates, collector rate for commercial properties in Industrial Area Phase 1 and 2 is Rs 82,368 per square yard.
The collector rate of booths in Sector 17, 19, 34, 22 and 35 is Rs 4,63,320 per square yard.
Similarly, the rate of booths in Sector 7, 8, 9, 26, 16, 18, 20 and 21 is Rs 3,70,656 per square yard.
Shop-cum-offices (SCOs) in Sector 17 continue to be the most expensive in the city as the collector rate is the highest at Rs 7,20,720 per square yard.
As per the existing rates, a residential property in urban areas is registered at Rs 82,368 per square yard. In rural areas of the city one has to pay Rs 10,296 per square yard as collector rate.With property rates in the city skyrocketing, the revised collector rates have forced the buyers to move towards SAS Nagar and Panchkula, experts feel.
Chandigarh Beopar Mandal (CBM) president Charanjiv Singh said the high collector rates were forcing the investors out of Chandigarh.
“Why would an investor come to Chandigarh when he can buy a property of the same size at less price while the profit margin is almost same,” he said.
Due to slump in the market, the estate office has not held any auction since December 2009. In 2010, the administration had planned auction of residential and commercial sites, but it was cancelled at the last moment.
Due to delay in the auction, the administration is losing huge revenues.