The Delhi Development Authority (DDA) on Monday slashed user conversion charges for the traders and businessmen in the national Capital by 75 per cent. The user conversion charge from residential to commercial — which was earlier Rs89,094 per sq. metre — has been reduced to Rs22,274 per sq. metre for the built-up area. The charges will be implemented in 80 markets in the national Capital and will benefit nearly 8,000 property owners in markets like Sarojini Nagar, lajpat Nagar, Khan Market, Green Park, Hauz Khas and South Extension.
According to DDA Vice Chairman Balvinder Kumar, the existing rates were too high and deterred the traders from getting their properties regularised as per the land use. “The user conversion charge in 80 markets has been reduced to 25 per cent of the existing rate. This will prompt the businessmen to get their properties regularised and run their business in a legal manner,” he said.
Notably, the ground floor in these markets was meant for commercial purpose only while the top floors were residential units. However, over the years the top floors were also being used for commercial purposes, thus causing revenue loss to the DDA and other civic bodies. In a related development, the DDA has also approved Rs9,000 crore for 2015-16 fiscal year with focus on developing residential units and enhancing the green cover in the city. The authority has also approved the MoU between DDA and NBCC for creating the “cyber hub” at Karkarduma.
The DDA will start construction of 38,000 flats by the end of this year, taking the total number of under construction flats to one lakh. The DDA VC said the agency has already started the construction of 62,000 flats and a fair amount of the budget will be spent on construction of new houses.
The budget for this year has presented a growth of 172 per cent over the previous year’s budget estimate. “Main activities during 2015-16 will be in the areas of construction of houses, development and disposal of lands, creation of infrastructure and expansion of greens,” officials said. The DDA has also earmarked grants to DMRC amounting to Rs313.50 crore. Rs360 crore has been set aside towards maintenance fund for the first time for the Housing Scheme 2014.
The decision comes after traders met Union Urban Development Minister M Venkaiah Naidu seeking to reduce the conversion charges. As per the existing rate, the conversion charge for a property measuring 50 sq. metre would amount to nearly Rs44 lakh. However, the revised rates would reduce the amount to Rs11 lakh. DDA officials said these shopping-residential areas were constructed much before the Master Plan of Delhi 1962 came into implementation.