Chandigarh MC slashes collector rate by 25% for long-vacant commercial properties

Even though the collector rates were revised this year, MC’s engineering wing is working out on old rates but even then, the shops are not being rented out despite multiple auctions

Since there are no takers for a number of properties across the city rented out by the Chandigarh Municipal Corporation (MC) due to perceived exorbitant rents, the MC House on Friday passed an agenda to address the issue. The new measure involves reducing the existing rent of those properties, which have not been successfully rented out in three or more auctions, e-auctions, or expressions of interest (EOIs), by 25% to attract bidders. The civic body anticipates that this step will also lead to increased revenue generation.

The agenda also mentioned that the collector’s rates have also been revised with effect from April 1, 2025 and the engineering wing of the corporation have worked out of existing rents on old collector rates. (HT File Photo)

Even though the collector rates were revised this year, MC’s engineering wing is working out on old rates but even then, the shops are not being rented out despite multiple auctions.

In an agenda placed before the MC House, it was stated how various municipal properties are being put to e-auction/ auction/expression of interest (EOl) basis for renting out on monthly rental basis but due to rents on higher side, could not fetch the successful results and properties are not being rented despite repeated e-auctions/ auctions/ EOls.

For instance, shops at Sector 17/22 subway have been put up for auctions five times, but could not fetch the successful results. The rent of these shops, as per MC records, is ₹40,000 per month.

Kiosks at Japanese Garden, Sector 31, have been put to auction seven times and Kiosks at Shivalik Garden, Manimajra have also been put to auction four times, but could not fetch the successful results. The monthly rent for these kiosks is ₹5,000.

The agenda also mentioned that the collector’s rates have also been revised with effect from April 1, 2025 and the engineering wing of the corporation have worked out of existing rents on old collector rates, even then the properties are not being rented out.

The agenda stated that if, at present rents are revised as per new collector rate, then the rent would further go high, which may also be a reason for unsuccessful auction. It would also be relevant to submit here that sometimes, a single bidder applies for auctions, e-auctions and EOls but the properties are not allotted due to single bidder.