Quietly MCD plans to upgrade Colonies to a Higher Category ...... IE ..... Category-B Colonies to Category-A etc

 Shamelessly Serving CATTLE Class – Charging CLUB Class

QUESTIONS:

1. How many new Tax Payers has MCD added in the Tax Net ..... currently only 30% are paying Property Tax ?

2. Has MCD upgraded the Infrastructure ..... Parking, Sewage, Drainage etc ?

3. Has MCD improved upkeep of Roads, Parks, Schools, Sanitation etc ?

4. Does MCD know that the worst hit will be Category-B Colonies as the circle Rate will become higher than the Market Value of the Property ?

NORTH AND EAST MCD HAVE ALREADY PASSED A RESOLUTION TO UPGRADE COLONIES TO A HIGHER LEVEL ........ SDMC SHALL SOON FOLLOW.

The Municipal Valuations Committee (MVC) submitted its report in 2010 after Public Hearings. At that time RWA’s managed to get the upgrade stalled on the grounds that MCD should first bring the infrastructure up to the level of a Category-A Colony and then think of making the change.

Three years hence, the condition of most colonies is worse off on all fronts. Over the past few years most colonies have deteriorated in civic infrastructure and many facilities have vanished ........ the roads have not been re-carpeted and have bigger potholes; sewage has been overflowing on streets and back-flowing into homes; water supply is even more erratic; no parking facility has been added; back-lanes are a mess; footpaths broken and encroached; rampant water logging during rains; reduced bus service and no Metro Feeder Service .... the list is long.

Now Quietly, without taking Public or RWA’s into confidence, the MCD is pushing through a proposal to upgrade twentyfive Category-B colonies, based on a 2010 Municipal Valuations Committee Report.

The logic given in the MVC Report is, up-gradation of a colony is not being done on the basis of infrastructure provided, but is to be raised on account of capital appreciation .... RWAs took strong objection to this line of thinking, Property Tax is collected for the Infrastructure and Municipal Services provided and not Notional Gains.

MCD must understand .... 1. Capital appreciation of property arises only when one sells a property and this notional appreciation is of no use to the resident. 2. State Govt. extracts 7% Stamp Duty on purchase of property. 3. Central Govt. charges a hefty 23.65% including cess by way of Capital Gains Tax.

 

Cash strapped MCD has other ways to increase revenue, raising the category without first improving the infrastructure is Daylight ROBERY. MCD had raised the Tax rate from 10% to 12% in 2012 instead of upgrading the colonies, after Public Outcry. They can again raise the Tax Rate by factoring in inflation, better still TARGET lakhs who are not in Tax Net ...... but application of the Mind or Hard Work is not MCD’s forte.

Upgrading to Category-A will not only Tantamount to Cheating but will also make it difficult to sell Properties in all Category-B colonies as has been the case in Friends Colony. The CIRCLE RATE of Category-A is Rs.7,74,000/- per sqm where as the circle rate of Category-B is Rs.2,45,520/- per sqm ...... the going rate in Category-B is around 5-6 lakhs/sq.yard.

Meaning there by that even if one sells property at Five Lakhs/sq.yard, you pay Registration Fee at 7 Lakhs/sq.yard.

IS THAT FAIR ????? If tumbling property prices and rentals in the past year are anything to go by, then most colonies should be downgraded to Category-C-D as MCD has done precious little to upgrade the ageing infrastructure ..... are you listening Area Councillors ?

Warm Regards,

Rajiv Kakria

PS: LIST OF CATEGORY -B COLONIES that will be upgraded to Category-A

1) GK-I
2) GK-II
3) GK-III
4) GK-IV
5) GK-Enclave
6) Green Park Extension
7) Green Park
8) Gulmohar Park
9) Hemkunt Colony
10) Hauz Khas
11) Kailash Colony
12) Kailash Kunj
13) Pamposh Enclave
14) Panscheela Enclave
15) Sadhana Enclave
16) Safdarjung Enclave
17) Safdarjung Development Area
18) Soami Nagar
19) South Extension-I
20) South Extension-II
21) Vasant Enclave
22) Saket
23) Kailash Hills
24) Jaipur Estate
25) Lodhi Colony