The New Delhi Municipal Council has revised land rates for commercial properties in areas under its jurisdiction, bringing a huge drop in prices for those who want to convert their properties from leasehold to freehold.
In a decision that will be ratified in the council meeting tomorrow, a commercial property that used to cost Rs 19.35 lakh per sq metre will now cost Rs 76,000.
The new rates will be as per Delhi Development Authority's land rates.
"NDMC had in 2008 adopted Delhi Government's circle rates as land rates. Circle rates are for the purpose of registration of property under Stamp Duty Act and not for conversion.
"But the agency had misconstrued them as circle rates.
"Now, under this decision, the civic agency has decided to go with the Delhi Development Authority's (DDA) land rates," said Sanjiv Mehra, president, Khan Market Traders' Association.
Mehra said that the traders associations are happy that the NDMC has corrected the "anomaly".
Many property owners were not opting for conversion due to the exorbitant rates, causing losses to the civic agency, NDMC officials said, adding, the agency hopes to earn revenue from the conversion scheme.
A freehold property gives the owner unlimited ownership rights as compared to a leasehold property.
"We studied the matter and found that Rs 19.35 lakh per sq metre as land rate for conversion was not justified.
"Now, with the new rates, people can take benefit of the government's leasehold to freehold scheme," said Jalaj Srivastava, NDMC chairperson.
The eight markets -- including Khan Market, Sarojini Market, Khanna Market among others -- that have been transferred to NDMC by Land and Development Office (L&DO) will be benefited by this decision.
"Technically, there has not been a drop in prices as NDMC was supposed to follow the rates authorised by L&DO. The L&DO rate for a property in Khan Market is Rs 28,980 per sq metre and the DDA rate is Rs 76,000," Mehra said.
