E-Paper
Collector rates in Mohali hiked by up to 76%
New collector rates of residential, commercial and industrial properties in Mohali district to come into effect from July 4
In a blow to Mohali’s real estate market, already hit hard by the Covid-19 pandemic, the district administration has increased the collector rates of residential, commercial and industrial properties by 42% to 76% depending upon the locality for 2022.
The new rates, applicable from July 4, are set to multiply the already hefty stamp duty on properties by lakhs. The revision in rates comes after a 35% hike in 2021 as well that had helped the administration rake in almost double the stamp duty compared to 2020.
Besides, the administration has also increased the construction charges from ₹700 to ₹2,000 per square yard.
Stamp duty, calculated through the collector rate (also known as circle rate) or property’s consideration value, whichever is higher, is levied on every property registered with the sub-registrar’s office. For a male owner, the stamp duty is 8% of the property’s collector rate depending on the total area, 6% for a female owner and 7% in case of joint ownership.
With the collector rates revised, now if a male owner wants to get a 500 square yards plot registered, he will have to shell out a minimum ₹12 lakh as stamp duty instead of the earlier ₹8.80 lakh, when the collector rate was ₹22,000 (see box). The detailed revised rate list is also available on www.sasnagar.nic.in.
The consideration value is the amount involved in any sale transaction agreed between the buyer and seller.
Reacting to the hike, former chairman of the Mohali Property Consultants’ Association (MPCA), Shailander Anand said, “The administration’s decision to increase the collector rates is quite ill-timed, as the real estate market has just started to recover from the impact of the Covid-19 pandemic. The hiked rates will further slow down the realty market in the district where the rates were already relatively quite high.”
Notably, the Greater Mohali Area Development Authority (GMADA) had conducted its last e-auction of properties only six months ago in December 2021. Even then, the authority had managed to sell only nine of the 21 properties on offer, with no bidders coming forward for eight booths and SCOs, two commercial sites in Sector 68, and a hospital and school site.
District revenue officer Pradeep Singh Bains said, “The collector rates are increased annually in line with the market prices of the properties that change from time to time.”
