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Ahmedabad Municipal Corporation (AMC) has recently announced a significant update in its leasing policies, extending the application of revised jantri rates to plots rented out temporarily. This decision comes nearly a year after the implementation of new jantri rates by the state government, doubling the existing rates.
In Gujarat, India, the jantri rate refers to the government-set minimum price at which properties can be bought or sold in a particular area. It serves as a guideline for property transactions and is used by authorities to determine the stamp duty and registration charges applicable to property sales.
Last April, in response to the state government's move, the AMC had chosen to maintain the old rates for temporary leases. However, with this latest decision, the AMC has opted to align the temporary lease rates with the revised jantri rates, although with a 25% concession on rent for plots utilized for commercial purposes.
This adjustment in policy has been framed with the objective of striking a balance between revenue generation and providing relief to lessees from the AMC, particularly targeting builders utilizing these spaces for labor settlements or new infrastructure projects.
Under the newly implemented jantri rates, the rent for residential plots will now amount to 4% of the annual jantri rate, while for schools or educational institutions, it will be 1% of the annual jantri rate. These figures include the 25% concession granted as per the new policy framework.
The leasing practices of the AMC have traditionally involved renting out plots identified in its town planning (TP) schemes for various durations and purposes, encompassing commercial activities, religious gatherings, social events, and parking arrangements. The rent for these plots was historically determined as a percentage of the existing jantri rates. However, with the recent revision in jantri rates, the AMC has deemed it necessary to update its leasing policies accordingly, reflecting the updated rates.
This decision is meant to have a tangible impact on various sectors and stakeholders within Ahmedabad, reshaping the dynamics of temporary plot leasing within the city.
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