RECOMMENDATIONS OF THE
MUNICIPAL VALUATION COMMITTEE
ON
SUBMISSIONS RECEIVED AGAINST PUBLIC NOTICE DATED 3RDJANUARY
2004 ISSUED BY THE MUNICIPAL CORPORATION OF DELHI INVITING OBJECTIONS ON THE
PROPOSED CLASSIFICATION OF COLONIES/ AREAS/ LOCALITIES, UNIT
AREA VALUES AND FACTORS
O.P.
Kelkar
Chairman
Government
of NCT of
MUNICIPAL
VALUATION COMMITTEE
GOVERNMENT OF
NCT OF
Chairman
Shri O.P. Kelkar I.A.S
Member Member Secretary
Dr.Gautam
Naresh Sh.Akash Taneja I.T.S
Senior
Economist, NIPF&P Spl. Officer (UAM)
New Delhi Municipal Corporation of
Assisted
by
Shri R.D. Gupta Shri
V. K. Bugga Shri D. K.
Gupta
Consultant, Govt. of NCT Delhi Chief
Town Planner Dy. A & C
Shri P.K.Jha AD PR Shri
Vineed M. ACA Shri Bharat Bhushan
Shri H.S. Bedi Shri
Subhash Takkar
Acctt. Shri
M.K. Singh AA&C
ShriU.M. Rao Shri Uthaman Krishnan Shri Pradeep Patwal
Ms. Hema Patwal Shri Kewal Ram Shri Jagdish Chand
Shri Sanjeev Kumar Shri Sandeep Gupta Shri Shiv Ram
Shri Ranbir Singh Shri Narayan Singh Shri Anil Tiwari
MUNICIPAL VALUATION COMMITTEE Govt. of NCT of Core VI A, III Floor, Lodhi Road, New
Delhi-110 003 Tel: 24645863,24645864 Fax-24645853 O.P.Kelkar
I.A.S Chairman
Dated:
Dear Shri Mehta,
Consequent to the Report of the Municipal
Valuation Committee dated 1st January,2004, the Committee is pleased
to present its Recommendations on the submissions received against Public
Notice dated 3rd January,2004 issued by the Municipal Corporation of
Delhi inviting objections on the proposed classification of
colonies/areas/localities, unit area values & factors.
With regards,
Yours sincerely
(O. P. Kelkar)
Shri Rakesh Mehta
I.A.S.
Commissioner
Municipal
Corporation of
(Dr. Gautam Naresh) (Akash Taneja)
Member Member-Secretary
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Contents |
Page |
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1. Preface 2. Recommendations ANNEXURES
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i to iii1-5 |
P R E F A C E
In exercise of the powers conferred by sub-section
(1) of section 116 of the Delhi Municipal Corporation Act, 1957 (as amended),
the Government constituted the Municipal Valuation Committee vide order dated
28.10.2003 for a period up to 31.12.2003.
The following task was assigned to the Committee under sub-section (5)
of section 116 read with sub-section (2) of section 116 A of the Act ibid:
(a)
To
make recommendations to the Corporation on
(i) the matters relating to classification of
vacant lands and buildings in any ward of Delhi into colonies and groups of
lands and buildings and fixation of base value per unit area of any
owner-occupied vacant land or covered space of any building, and
(ii)
the
factors for increasing or decreasing, or for not increasing or decreasing, the
base unit area values specified in clause (i), separately in respect of each of
the parameters of type of colony, use, age, type of structure and occupancy
status of the vacant land or building, as the case may be, subject to a lower
limit of zero point five and upper limit of ten point zero.
(b)
To
consider objections under section 116 C, and to make recommendations thereon to
the Corporation.
The term of the Committee was later extended by the
Government upto 29.02.2004 (Annexure-I).
2. The Municipal Valuation
Committee submitted its interim Report to the Municipal Corporation of
3. Having regard to these
recommendations of the Municipal Valuation Committee, the Municipal Corporation
of Delhi issued a public notice on the 3rd of January, 2004 (Annexure-II).in
terms of section 116 B of the Delhi Municipal Corporation Act, 1957 (as
amended) declaring its intention to classify vacant lands and buildings in each
ward into such colonies and groups of lands and buildings along with the base
value proposed to be specified per unit area of vacant land and per unit area
of covered space of buildings within each such group and also the factors for
increasing or decreasing the base unit area values of such vacant lands or
buildings as recommended by the Committee and invited objections within 30 days
of the publication of the notice in terms of section 116C of the Delhi
Municipal Corporation Act, 1957 (as amended).
4. A total of 675
representations covering about 226 colonies/localities were received by MCD
from individuals/citizens/groups/resident welfare associations and associations
of trade and industry, by the cut off date of
5. The Committee would wish to
highlight that most of those who appeared before the Committee for public
hearing or otherwise submitted representations have, while making comments on
the recommendations of the Committee on classification and unit area values,
complained of woeful state of civic services in their respective localities and
the lack of responsiveness on the part of the civic authorities. They were not averse to the new orientation
proposed to be given to the method of property tax assessment and appreciated
the effort being made to free them from clutches of inspector-raj. However, they did expect some sort of linkage
of the tax with the state of civic services.
They pleaded that the Committee should convey their serious concerns to
the Corporation so that the move to introduce the new method of property tax
assessment goes hand in hand with the improvements in the state of the civic
services as well. The Committee takes
this opportunity to convey to the Corporation the concerns of the people on the
lack or poor provision of civic services to the citizens and exhort them to
make serious effort to improve the state of affairs in a time-bound
manner. This would go a long way to make
the new method of property tax assessment acceptable and citizen friendly.
6. The recommendations being
made by the Committee in this Report are the outcome of a most sincere exercise
to make the new system simple, hassle-free and just to various sections of the
Society. While it has not been possible
to accommodate all the suggestions made by the citizens, the Committee did its
best to make the system consistent, within the constraints of data, the time
available and also looking to the revenue requirements of the Corporation. The Committee thanks all those who took pains
to submit representations and/or appeared before it for public hearing. The Committee indeed benefited a lot from
this process in arriving at its findings.
7. It is a fact that the
Committee was severely handicapped in its work on account of lack of requisite
and authentic data. The Committee
therefore, recommends that the Corporation should initiate seriously an
exercise for the collection of data and computerisatio of entire data base as
recommended by the Expert Committee in Chapter 9 of its Report, including putting
a GIS Application System in place to ensure that the requisite data with fair
degree of accuracy become available to make the task of future Municipal
Valuation Committee easier.
8. The Committee also
recommends that the Assessment and Collection Department of the Corporation
should be thoroughly overhauled and reorganised to meet the challenges of the
new method of assessment.
Reorientation/training workshops should also be organized for the
officers/staff of the Department for this purpose. Apart from administering the new method in
the case of properties which are already covered by the tax-net. The Department must make concerted efforts to
widen the tax-net and cover the left-out properties. For this purpose, the Department may have a
survey done of the new properties. The
Corporation may seriously think in terms of introducing some scheme of
punishment and rewards in the case of staff to improve the efficiency of the
A&C Department. A property tax guide
to assist the taxpayers in calculating and paying new tax should also be
published and made available to the public for better understanding and
compliance of the new system.
9. The Committee places on
record its appreciation of the hard work put in by its Member-Secretary Shri
Akash Taneja who with the team of the Corporation and supporting staff of the
Committee has enabled us to complete this arduous task in a highly professional
manner within the very short time at our disposal.
O.P.KELKAR
Chairman
RECOMMENDATIONS ON UNIT AREA VALUES
The
Committee considered all representations/suggestions and objections received on
the proposed unit area values for the various categories. The recommended unit
area values based on the model 25%(+) for higher categories and 15% (-) for
lower categories with unit area value of category D as Rs. 320/- as base,
rounded off to the nearest multiple of 10 as per recommendations of the Expert
Committee are as under:
Table 1: Recommended
Unit Area Values
Category
|
Unit Area Value (Rs. per square metre) |
|
A |
630 |
|
B |
500 |
|
C |
400 |
|
D |
320 |
|
E |
270 |
|
F |
230 |
|
G |
200 |
|
H |
100 |
This
replaces the recommendations on unit area values contained in page R-1 of the
interim Report dated 31.12.03 of the Committee. Table 1 replaces Table 3 of the
Report.
RECOMMENDATIONS ON CLASSIFICATION
Recommendations
of the Committee on classification after taking into account the submissions
made in the Public Hearings, consideration of the representations made in this
behalf and the parameters for classification as prescribed in Section 116A of
the Act are placed in Annexure IV. The present category-wise
distribution of colonies/ areas/ localities after incorporating the recommended
changes is given in Table 2.
Table 2: Recommended
Category-Wise Distribution of Colonies/Areas/Localities
|
Category |
Number
|
Area
|
||
|
|
Number |
Percent |
Sq.Km |
Percent |
|
A |
52 |
2.62 |
21.21 |
4.10 |
|
B |
51 |
2.57 |
31.47 |
6.08 |
|
C |
161 |
8.11 |
72.00 |
13.91 |
|
D |
201 |
10.13 |
93.98 |
18.16 |
|
E |
220 |
11.08 |
57.67 |
11.14 |
|
F |
528 |
26.60 |
129.22 |
24.96 |
|
G |
772 |
38.89 |
112.08 |
21.65 |
|
Total |
1985 |
100.00 |
517.64 |
100.00 |
Table
2 replaces Table 4 of the Committee’s interim Report dated 31.12.03.
RECOMMENDATIONS ON FACTORS
- OCCUPANCY
FACTOR (OF): The Committee
considered the submissions received against imposition of an occupancy
factor for tenanted properties which was opposed mainly on the grounds
that tenanted properties do not impose any additional burden on the civic
facilities provided by the Corporation and that the income received from
tenanted properties is in any case subject to deduction of income tax.
Looking to the fact that the property tax is not in the nature of a
service charge as also that it is a tax on property and not on income, the
Committee decided to retain the occupancy factor of 2 in case of tenanted
properties or portion thereof for all categories as recommended in its
Report dated 31.12.2003 and make it applicable to non-residential
properties also.
- STRUCTURE
FACTOR (SF): The Committee
considered the submissions received
mainly from owners/occupiers
of industrial units to
reduce the multiplicative factor of semi-pucca structures. It has however
been decided to retain the multiplicative factors for pucca, semi-pucca
and kachcha structures as given in the Report dated 31.12.2003 of the
Committee primarily on the grounds that substantial concessions have
already been extended by the Committee towards reduction in the use factor
and categorization in industrial areas. The multiplicative factors for
pucca, semi-pucca and kachcha structures recommended by the Committee are
as under:
|
Structure type |
Pucca |
Semi – Pucca |
Kachcha |
|
Factor (SF) |
1.0 |
1.0 |
0.5 |
- AGE FACTOR
(AF): The Committee received a
large number of representations on the age factor ranging from linking up
the rebate on age to the rate of depreciation of the property to reduction
in slabs for decrease in multiplicative factors and giving a higher rebate
to older properties. The Committee after consideration of all such
representations recommends a factor of 0.5 for pre-1960 properties and
reduction in blocks of age from 20 years to 10 years. The multiplicative
factor for age would accordingly be as follows:
|
Year
of completion |
Pre-1960
|
1960
to 1969 |
1970
to 1979 |
1980
to 1989 |
1990
to 1999 |
2000
onwards |
|
Factor
(AF) |
0.5 |
0.6 |
0.7 |
0.8 |