The Hindu : Kerala News : Lease rents halved as arrears mount

Online edition of India's National Newspaper
Thursday, Jun 10, 2004

Kerala

Kerala

Lease rents halved as arrears mount

By Our Special Correspondent

THIRUVANANTHAPURAM, JUNE 9. The Government has decided to halve the rent on revenue leases in cities and towns as unrealised arrears of rents mount to Rs. 200 crores. The Revenue Minister, K. M. Mani, told presspersons here today that 75 per cent of the dues between 1995 and 2004 would be waived to enable the leaseholders to clear the arrears and pay rents at reduced rates from April this year.

The Minister said the arrears had mounted, as the rent was very high at 20 per cent and 10 per cent of the market value for commercial and non-commercial plots. This meant that the Government would be collecting an amount equal to the value of the land in five years. The market value of the land was being revised every three years. Thus, the rents had become unbearable for the lessees. Hardly one per cent of the lessees were paying the rents. Some had obtained stay orders against revenue recovery.

He said the new rate for leases given to organisations and individuals for commercial purposes would be 10 per cent of the market value of land whereas rent on long-term leases (99 years) to individuals, organisations and charitable societies would be only 5 per cent.

Besides, the rent for land leased out to hospitals and educational institutions had been reduced to 2 per cent for the statutory minimum of land they needed. If excess land is being used for commercial purposes, the rent would be collected at 10 per cent of the market value. Similarly, the rent on land leased to public sector undertakings for commercial purposes had been slashed to 5 per cent. The rent would be only 2 per cent if the land is being used for non-commercial purposes.

The rent on land leased to various clubs in connection with tourism and culture had been brought down to 2.5 per cent. The lessees should pay the arrears up to 1995 in full besides 25 per cent of the arrears between 1995 and March 31, 2004.

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