With the enforcing of area re-categorisation, as suggested by the Municipal Valuation Committee (MVC), there would be major change in the property tax slab. Several areas, which now pay minimal tax, would have to pay more.
Municipal officials claim that this re-categorisation was much needed. There are about 3,000 colonies under MCD's jurisdiction. The MVC, in its proposal, has now suggested about 100 areas to be tagged under Category A.
Categorising a colony
The MVC assigns a value to each factor that goes into categorising a colony: location of the area, overall development the colony has witnessed and commercialisation, among others.
This time, the MVC has also included Metro as a factor to categorise a colony. “The Metro has not just helped connectivity, it has led to opening of many commercial hubs in those areas, leading to improvement in infrastructure, too. So, while recategorising a colony, we have assigned 10 points to those areas which have access to Metro,” said a senior MCD official.
A colony that has a grading of 89 or more comes under Category A and Category B has grading between 75 and 88. The official said there were a number of Category B and C areas, which would now come under Category A because of the 10 points. “These colonies have the same infrastructure that Category-A colonies have, so why should they pay less tax?” the official said.
Property rates go up
He said that the introduction of Metro in several areas have increased the real estate prices there. “There was a major jump in property values wherever Metro has spread its network. The property prices have been soaring, but no one wants to pay when it comes to property tax,” the official added.
Residents oppose plan
"Just one Metro does not improve the quality of life. Everyone uses water and electricity. These factors will have to be taken into consideration while re-categorising. Mere public transportation can't be used as an excuse to upgrade," said Rajiv Kakaria, a member of GK I resident welfare association.