In order to perk up fiscal health, the East Delhi Municipal Corporation (EDMC) has asked property owners to pay conversion charges of properties for change in land use from residential to commercial on notified mixed land roads. This move comes as a way to decrease their financial burden. EDMC has asked the property holders to pay conversion charges by June 30 of this financial year. For any delay in the payment, the property owner will be liable to pay 8 per cent interest on the due amount.
There are a total of 42,369 registered commercial properties, of which, charges of 21,331 have been paid and 46 property holders have paid the conversion charges once. While 7,984 properties have already been issued sealing notices, 13,008 will soon be notified. The corporation also appealed to the property owners to pay the conversion and parking charges at the earliest. “The conversion charges are already over due. The corporation will have to take action including sealing of the properties if not cleared at the earliest. The properties carrying out commercial activities in the industrial areas are also liable to pay such charges,” said EDMC Standing Committee Chairman BB Tyagi.
As per the rules, properties on mixed land use notified roads which changes use from residential to commercial are liable to pay conversion charges. Therefore, properties in industrial areas converting their use to commercial are required to pay conversion charges. In 2012-13, EDMC received a revenue collection of Rs3,049 lakh and Rs1,843 lakh in 2013-14. Revenue of about Rs1,699 lakh was collected between April 2014 and February 2015. Moreover, a total of 685 building plans were sanctioned in 2014-15 against 1,255 in 2013-14.