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The Gurugram Metropolitan Development Authority (GMDA) has proposed a 1% duty on the transfer of immovable properties located along the 14km stretch of the Southern Peripheral Road (SPR) from Ghata village to NH-8 near Kherki Daula for the next three years. If approved, buyers and owners will have to pay 1% of the purchase amount of a property to GMDA at the time of registration. The duty will be applicable on sale, gifting, and exchange of properties. GMDA officials stated that on average, a property owner may have to pay around Rs 2 lakh as transfer duty.
The GMDA Act allows the Authority to levy transfer duty on properties within its jurisdiction. The fund collected from this levy will be utilized specifically for SPR redevelopment and the duty will be charged for three years only. The GMDA aims to earn Rs 125 crore annually through this transfer duty, totalling Rs 375 crore over the next three years. Additionally, private developers could pitch in another Rs 285 crore. Additionally, the state government's town and country planning department may deposit external development funds for areas along SPR amounting to Rs 171.2 crore.
While these will cover most of the SPR project cost – Rs 831 crore of the total estimated Rs 845 crore – GMDA may use earnings from developing wayside amenities on roads such as advertisements and by leasing space under flyovers. If needed, it may ask the state finance department for funds by floating bonds. The proposal was granted in-principle approval by Chief Minister Manohar Lal Khattar, who also holds charge as GMDA chairman, last month. A final nod is pending to implement this plan.
Reisdents have raised concerns about this proposal. They have questioned why they are being made to pay for the SPR project, given that they are already paying stamp duty and property tax. Levying another 1% is unjust, they say. Property rates are already on the higher side in this area, and this can dampen the spirit of middle-class families that aspire to buy a home.
The SPR revamp has been on the cards since March 2019 and includes widening the main carriageway, constructing underpasses, flyovers, service roads and footpaths, introducing cycle tracks, green cover, and developing the drainage system. The cost of properties in the area can range between Rs 1.5 crore to Rs 4 crore, according to residents. Lakhs of residents live in sectors, including those from 58 to 79 that dot the SPR.
While the transfer duty may seem like an additional financial burden for homeowners and buyers, it is crucial to fund infrastructural projects like the SPR redevelopment. This project will enhance the connectivity of the SPR and reduce traffic congestion, which will benefit the residents of the surrounding areas.
Moreover, this transfer duty is only applicable for three years, and the funds generated from it will be utilized for a specific purpose, i.e., the SPR redevelopment. Private developers and the state government's town and country planning department will also contribute to this project's funding.
In conclusion, while the transfer duty may not be the most popular decision for residents, it is a necessary measure to fund infrastructural projects like the SPR redevelopment. It will lead to better connectivity and reduce traffic congestion, which will benefit the residents of the surrounding areas in the long run.
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