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Kelkar panel leaves categorisation to MCD

By Our Staff Reporter

NEW DELHI, FEB. 28. Changing its earlier proposal that farmhouses of the Capital be categorised on the basis of their neighbouring localities, the Kelkar Committee on house tax has left it to the Municipal Corporation of Delhi to determine their category. However, the Committee downgraded the controversial Sainik Farm in South Delhi from B to C category of colonies. Though there was no explanation for this downgradation except that there was representation from the residents of the area before the Committee in this regard.

The Committee in its report -- submitted to the Municipal Commissioner, Rakesh Mehta, today -- said the task for categorisation of the rest of the farmhouses should be done by the MCD. "The decision of the MCD in this regard should be communicated to the owners and occupiers of the farmhouses," the report said.

Mr. Mehta said they were working on the principles on which farmhouses would be categorised and soon the owners of the farmhouses would be informed about it. The other important recommendations relate to the following categories:

Vacant Land

Instead of unit area system, the Kelkar Committee has recommended that property tax be collected from vacant land on the basis of annual value. The report said the annual value of the vacant land be computed at a factor of 0.3 of the base unit value of the colony -- if the plot is total vacant - or of unit value of the covered area of the plot, if there is some construction.

The Committee observed that there was no justification for sparing from property tax the plots either completely vacant or having disproportionately little construction as in case of farmhouses.

Hospital / School / College

Revising its earlier proposal that the MCD should determine the level of free, voluntary or charitable services by educational institutions and hospitals by constituting an expert committee for the purpose, the Committee recommended that the municipal body could evolve simple guidelines to determine their applicable non-residential use factor of such properties.

Mr. Mehta said Government-owned educational institutions and hospitals would be given factor one, while those schools and colleges run by trusts which charge a little more than the rates approved by the University Grants Commission would be given factor two, and pure commercial institutions would have to pay their house tax by a factor of four.

Small Flats

Residents of small flats (up to covered area of 50 sq. m.) have been given a rebate of 10 per cent. Following a large number of representations that owners of flats be given some concession as compared to plotted properties, the Committee recommended that a factor of 0.9 be applied to the annual value of the flat.

Left out Colonies

The onus for including the names of left out colonies and deciding on their categorisation has been left on the MCD. This should normally be on the basis of nearest colony and the decision of the MCD would be valid till the next Municipal Valuation Committee.

Capping Increase in Tax

Arguing that there would be no steep hike in property taxes for any of the categories after the implementation of the Unit Area Method, the MVC Committee recommended if there was any such case, those could be referred to the proposed Hardship Committee to be set up by the Government. The Committee rejected the request for capping of increase in tax. Mr. Mehta said the Hardship Committee would soon be constituted to receive and solve the complaints received from the property-owners.

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