Ground rents revised for playgrounds, gyms

But the state revenue department, which oversees the administration of these plots, had approached the Cabinet on grounds that there was no policy for the renewal of leases. “The original lease tenure for several such grants has already expired. But the lack of a uniform policy for their lease renewal was creating hurdles,” said the official.

On the lines of a similar policy adopted for gymkhana lands in Mumbai in June, the government has now linked lease rents to the plot’s ready reckoner (RR) rates. RR rates are state-determined market rates for a plot. They are usually lower than actual market worth of a plot.

Upon renewal of their respective leases, such institutions will now be required to annual pay a ground rent equal to 0.1 per cent of a tenth of the RR values. While the leases will continue to operate on concessional basis, officials admitted that the ground rents would rise in all cases when compared with the existing rents. While the finance department had sought the devising of location specific lease rents, the Cabinet agreed with the revenue department’s contention that it would not be appropriate.

The government has said that the new lease rents will be payable from January, 2019.