Gurgaon gets new civic body | india | Hindustan Times
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Gurgaon gets new civic body

The formation of the MCG has brought bad news for those owners who have rented out their premises, they will now have to pay house tax, reports Sanjeev K. Ahuja.

india Updated: Jun 05, 2008 02:19 IST
Sanjeev K. Ahuja

The formation of the Municipal Corporation of Gurgaon (MCG) has brought bad news for the owners of private colonies such as DLF City, Sushant Lok, Southcity, Palam VIhar who have rented out their premises. They will now have to pay house tax, though those living in their own houses would be exempted from it.

Owners of commercial properties such as malls, market plazas, commercial and office complexes will also have to pay house tax to MCG. However, confusion over the issue of upkeep and maintenance of these colonies continue to prevail, as officials are still taking views of experts.

Since they were developed in the 1980s and thereafter, property (residential and commercial) owners in privately development colonies had not been paying house tax to any civic body. Since these colonies continued to be maintained by the respective developers, house owners pay maintenance charges at mutually agreed rate to the developers.

The MCG became effective from June 2. Its first municipal commissioner Rajeev Sharma assumed office on Wednesday. The new boundaries of MCG also included developed private colonies and a number of proposed sectors in Master Plan 2021.

Sharma said house owners in colonies such as DLF City, Sushant Lok and others who have rented out their properties would have to pay house tax. “Residential property owners would have to pay at the rate of 2.5 per cent of the annual rent collection and also 0.50 percent as fire charges. Owners of commercial property owners would pay 5 per cent of their annual rent collection and one percent as fire charges,” he said.

Sharma has already issued the necessary directives to begin the survey of colonies and compile data on the number of eligible properties from where house tax would be charged. The house tax would be chargeable from June 2, 2008, he added.

When asked whether MCG would take over the upkeep and maintenance of private colonies, he said the matter is being clarified. “I have called a meeting of town and country planning department officials to seek their legal opinion on the issue of upkeep and maintenance of private colonies,” the municipal commissioner said.