LAST HIKE IN 1993 Six-fold hike in transfer fee for leased civic plots

Mumbai: After two decades, the BMC has decided to increase the transfer fee for leased civic plots six-fold. It has also hiked the penalty for raising illegal structures on leased properties, and this proposal has finally received anod from the improvements committee. Corporators say these decisions will help the BMC generate more revenue. 

    The reason behind the massive hike has been attributed to the fact that the transfer fee for leased properties has not been hiked since 1993. Previously, a leaseholder had to pay the BMC Rs 5,000 for permission to transfer the lease. As per the new proposal, the leaseholder will have to pay Rs 30,000, with a 10% increase every year. "The transfer fee amount was last fixed in 1993. It would be unfair to call the hike large as it doesn't amount to much after a final calculation," a senior civic estates department official said. 
    The state assembly in June cleared a bill empowering the BMC to collect the transfer fee for properties given on lease. The Mumbai Municipal Corporation Act was amended to empower the civic body to levy transfer fees and penalties on the lessee for the transfer of property. It would now be mandatory for the lessee to seek prior permission of the BMC before transferring the property to another party. The rate of the transfer fee and premium on account of unearned income will be decided by the corporation. 
    Meanwhile, residential structures built without permission will invite an increase in penalty from Rs 22 per sq ft to Rs 125 sq ft. Commercial and unauthorized structures will face penalties of Rs 200 per sq ft from the previous Rs 23 per sq ft and Rs 300 per sq ft from the previous Rs 48 per sq ft, respectively.