PMC News: State Government Revamps Municipal Corporation Rental Rates, Empowers Committee To Determine New Rates


Pune: Policenama online – PMC News | In a significant move, the state government has overhauled the 2019 Seat Allocation Rules of Municipal Corporations, triggering a shift in the dynamics of space allocation and rental rate determination. The key alteration grants authority to a committee chaired by the Municipal Commissioner, marking a departure from the existing norms. (PMC News)

Under the revised regulations, the committee, led by the Municipal Commissioner, now wields the power to allocate space and decide rental rates, a responsibility previously within the purview of the Pune Municipal Corporation. However, a noteworthy discrepancy has emerged between the current rental rates of the Pune Municipal Corporation and the state-mandated minimum rates, potentially posing financial challenges for the Municipal Corporation.

The state government, through a recently published ordinance, has mandated all municipalities to implement the new rental rates as of September 13, 2019. Notably, the directive stipulates that the committee’s determined rental rate should not exceed double the rate in place before September 2019. This move aims to balance the financial implications for the Municipal Corporation.

In accordance with the government’s amendments, the rental rate committee must ensure that the ready reckoner point is not less than five (.5) for residential, educational, charitable, and public purposes and not less than seven (.7) for commercial and industrial use. Currently, the Pune Municipal Corporation fixes the rental rate at 2.5 percent of the Ready Reckoner, indicating a significant shift in the minimum rates set by the state government.

Educational and charitable institutions seeking to offer concessions in rent are now required to seek the state government’s approval, introducing a regulatory layer to such arrangements. Additionally, the lease amount is slated to undergo a five percent revision every three years, along with an increment in the deposit amount.

Crucially, the allocated space must be utilised for its designated purpose, as any violation or unauthorised change of use empowers the Municipal Commissioner to take corrective action, including the repossession of the space.

Heading the committee is the Municipal Commissioner, supported by key officials including the Additional Commissioner, District Deputy/Joint Registrar of the Stamps Department, Joint Commissioner (Municipal Administration), Assistant Director (Urban Planning), Deputy Commissioner (Head of Property Department), and an expert appointed by the Commissioner.

While the state government has stipulated minimum rates, the committee retains the flexibility to determine rents based on the specificities of the area, suggesting a nuanced approach to rental rate fixation.

Municipal Commissioner Vikram Kumar acknowledges the recent changes, emphasising a comprehensive study of the received ordinance and hinting at future implementations and adaptations in line with the evolving landscape of municipal regulations.

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