Reduction in collector rates: Property owners say too little

The collector rate is the minimum rate at which a property can be registered.

By: Express News Service | Chandigarh | Published:September 14, 2017 6:31 am
Commercial properties at Sector 17 Plaza in Chandigarh. (Express Photo: Jaipal Singh)

TRADERS AND property owners in Chandigarh are up in arms against the UT estate department’s proposal of reducing only 10 per cent in commercial properties and 5 per cent collector rates in residential properties.
Stating that the reduction was negligible and had no impact, various stakeholders have decided to submit a memorandum to the UT Administrator. The collector rate is the minimum rate at which a property can be registered.

According to the proposal of the committee constituted to look into the reduction of rates, the collector rate of SCOs at Madhya Marg and at sectors 34, 35 and 22 be reduced from Rs 4,63,320 per square yard to Rs 4,16,988 per square yard and the collector rate of SCOs at Sector 17 has been proposed from Rs 6,48,648 per sq yard to Rs 5,83,783 per sq yard.

Kamaljit Singh Panchi, Chief Advisor of the Property Consultants Association, said, “It won’t make much of a difference. Already there is a slump in the real estate market. The rates should have been reduced by a minimum of 20 per cent to attract people. We had submitted our representation to the administration also in this regard but to no avail.” He added, “A showroom at Madhya Marg was costing Rs 38 crore earlier and now it is around Rs 34 crore. It doesn’t make much of an impact.”

Sunil Kumar, former PCA president and vice-president of Laghu Udyog Bharti, said the industrial sector has been completely ignored. “The industrial units have been given a stepmotherly behaviour. They have not proposed any reduction in collector rates for the industry. Already the industrial units are shifting towards Mohali,” said Kumar, adding that in the last two to three years, around 150 industrial units have shifted their base to Punjab.

According to the proposal, in residential areas, the rates have been brought down by up to 5 per cent – Sector 1 to 12 (Zone I), Sector 14 to 37 (Zone II) and Sector 38 onwards (Zone III). The rate in Zone I has been reduced from Rs 82,368 per sq yard to Rs 78,250 per sq yard. In Zone II, the rate has been reduced from Rs 78,250 per sq yard to Rs 74,337 and in Zone III, it has been reduced from Rs 74,131 per sq yard to Rs 70,424 per sq yard.
A senior officer of the UT Administration said the rates are yet to be notified.

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