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The adoption of new jantri rates on April 15 has resulted in an increase in applications for plan clearance at the Ahmedabad Municipal Corporation (AMC). The AMC authorised 325 projects and collected Rs 290 crore in fees in the first 11 days of the month. This amount comprises of revenue from plan approval fees and purchased FSI, and it is the most ever earned in a single month under this heading.
The combined revenue from plan approval and chargeable FSI in February and March was Rs 298 crore, whereas Rs 290 crore was collected in just the first 11 days of April. According to authorities, the urgency to obtain clearance is due to the fact that FSI costs are related to the jantri rate for the region and would rise following the adjustment. Despite an average of 175 plans being accepted monthly, the number of plans submitted for review and approved in these 11 days has increased by 85%. According to officials, the revenue from plan approval and FSI charges was approximately Rs 1100 crore in 2022-23.
The Jantri or Annual Statement of Rates (ASR) is the minimum rate fixed by the Gujarat government below which a property cannot be registered in the State. This rate is used for the calculation of stamp duty, and registry fee levied on property transactions and differs between cities. The Gujarat government doubled the jantri rates from April 15,2023, alongside providing some rebates on the paid FSI and land conversion. After 12 years, the administration has increased jantri rates in Ahmedabad and has hiked prices by 50% for immovable property.
FSI is simply the ratio of the floor area of the building to be built to the total gross area of the land on which it will be built. The Floor Space Index is managed by municipal or local authorities that are overseen by the relevant state governments. These figures are fixed and based on the National Building Code, which specifies the maximum floor area that may be built on a plot of land.
In conclusion, the recent adoption of new jantri rates in Ahmedabad has had a significant impact on the number of applications for plan clearance at the Ahmedabad Municipal Corporation. This surge in activity can be attributed to the urgency among developers to obtain clearance before the FSI costs rise following the adjustment in jantri rates. The increase in applications for plan clearance is a positive sign for the development and growth of the region, and the record-breaking revenue collected in April is a testament to the success of the new jantri rates in stimulating economic activity in Ahmedabad.
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