To ensure that the process of conversion of properties from residential to commercial is ‘standardised’ and the government generates revenue, the Delhi Development Authority (DDA) has proposed to lower conversion charges to 25 per cent of existing rates. The move is expected to benefit over 8,000 shops in 80 city markets. “The proposal will be put forth before the DDA authority meeting in the next 10-15 days. Once passed, it will benefit both the government and shopkeepers. Not only will the shops function legally but the corporations too will be able to generate revenue,” DDA vice-chairman Balwinder Kumar said. Currently, each zone in the city has a different conversion charge. The maximum is Rs 1 lakh per sqm in some marketplaces. According to DDA, most shopkeepers are running shops out of residential set-ups in places like Khan Market, South Extension and Sarojini Nagar, among others. Therefore, on paper, the shops are registered as residential, not commercial, properties. Reportedly, the proposal was made on the directions of Union Urban Development Minister Venkaiah Naidu, who was approached by shopkeepers and market associations thrice over the past two months. Following this, a number of suggestions were made to alter the existing conversion charges. Finally, it was decided to lower the conversion charges to 25 per cent of the prevailing charges. “If a shopkeeper owns a shop on a 25-sqm area where the conversion charge is Rs 1 lakh, he is expected to pay Rs 25 lakh to register it as a commercial property. Shopkeepers, therefore, refuse to pay and continue to function as shops on residential properties. Because of this, the municipal corporations are unable to generate revenue. If the proposal is notified, the same shop will only have to pay Rs 8 lakh as conversion charge,” a DDA official said. The official said although the government is aware of these shops functioning on residential properties, the only solution is to lower the conversion charges. “These shops cannot be demolished,” he said.
