Govt slashes conversion rates for shops

NEW DELHI: The Centre on Wednesday slashed by two-third the rates for conversion of properties in the Capital for commercial purposes in the wake of less than one per cent of the affected traders availing of the scheme.

Announcing the drastic cut in the conversion rates, Union Urban Development Minister S Jaipal Reddy said the move follows representations from various quarters, including MPs, MLAs and councillors.

The new rates have been announced just ten days before the last date for paying the conversion charges.

After notification of certain roads in the Capital as either commercial or mixed land use through the Master Plan for Delhi 2021, traders were required to pay conversion charges by June 30 this year to regularise their premises.

The rates have been slashed following the recommendations of a committee set up by the Ministry to review the rates.

"The general feeling was that the rates were on the higher side. Less than one per cent of the traders came forward to make the payment although less than ten days are left to do so," Reddy told a press conference.

Generally, the annual conversion rate has been reduced by two-third of the existing rates for all categories.

Since the deadline for making the payment is round the corner, the traders can pay one-fourth of the charges by June 30 and the remaining by September 30.

A facility to make a one-time payment is being provided, under which eight times of the annual charges would have to be paid.