UT admn mulls keeping collector rate unchanged
With a slump in realty market, the Chandigarh administration is mulling not to increase collector rate for the current financial year.Updated: Oct 06, 2014 13:15 IST
With a slump in realty market, the Chandigarh administration is mulling not to increase collector rate for the current financial year.
The collector rate is the minimum rate at which the property is registered and nobody would be allowed to purchase land and immovable properties in different categories below the rate determined by the administration.
Currently, the collector rate in Chandigarh is considerably higher than Panchkula and SAS Nagar. According to sources, a proposal for not increasing the collector rate has been moved. The authorities are also mulling downward revision of collector rates in Industrial Area.
In October, the SAS Nagar administration had reduced the collector rate in new sectors in the district by nearly 20% to encourage the realty market. Subsequently, UT finance secretary Sarvjit Singh had asked UT deputy commissioner Mohammad Shayin to study the existing trend to bring the collector rate of Chandigarh on par with rates prevailing in Panchkula and SAS Nagar.
Last year, the administration had increased collector rates by up to 50%, pushing up the rates of both commercial and residential properties in the city by manifold. The hike had invited criticism from traders’ associations in the city, with some of them forming a joint action committee and staging a protest against the administration. The administration had increased the collector rates by 10% each in 2012 and 2011.
Last year, the ministry of home affairs (MHA) had also asked the administration to bring the collector rates on par with the prevailing market rates.
With market witnessing a downfall for the past several years, the estate office has not held any auction since December 2009. The estate office had even initiated the process of putting 111 properties under the hammer, including residential sites in sectors 35, 37 and 40, and commercial sites in sectors 37, 39 and 43 in 2013, but to no avail. As a result of delay in auction, the administration is losing out on huge revenue that could be earned through auction.
Despite repeated attempts, deputy commissioner Mohammad Shayin was not available for comment. Kamaljit Singh Panchhi, former president of Property Consultants Association, Chandigarh, said the existing collector rate was unreasonably increased and there was a dire need for a rollback to inject a new lease of life into the property market, which was currently going through rough phase.
First Published: Oct 06, 2014 13:11 IST