Published On : Sat, Apr 23rd, 2016

NIT Trustees’ decision for builders’ lobbies under guise of favouring common man

Peripheral Development Tax to be uniform for NMC

NIT Nagpur
Many the decisions of Nagpur Improvement Trust (NIT) so far may have invoked the wrath of the public, but the latest decision of NIT Trustees taken during a meeting held on April 22, 2016, though works out in the favour of the builders’ lobby may considerably reduce the injustice faced by the citizens.

According to the new decision, the Peripheral Development Charges for the areas falling under their control shall be equivalent to the Nagpur Municipal Corporation’s (NMC) Peripheral Development Charges.

For example, for constructing a building of 5000 square feet, NMC charges Rs 2 lakhs, while NIT charges Rs 635000/- as Peripheral Development Charges for areas falling under their jurisdiction. There were many complaints that the Peripheral Development Charges of Nagpur Improvement Trust was three times the charges levied by Nagpur Municipal Corporation which has led NIT Trustees to take this decision.

It was gross injustice when people had to pay heavy taxes to both NIT as well as NMC since the land belongs to NIT while the land falls under the jurisdiction of NMC. However, both of NIT and NMC shirk from developing the area and keep passing the buck to the other. In order to bring uniformity in taxes, this vital decision was taken for the benefit of property owners and tax payers.

This decision also makes it imperative for the NIT or NMC to repay the excess amount levied under Peripheral Development Charges since it would be injustice to such property owners who had paid excess amounts.

It could be mentioned here that 90% of layouts of 572 schemes have been handed over to NMC for development. 1900 schemes under the control of NIT are still to be handed over to NMC. However people have started living in the 70% of 1900 layouts. The remaining 30% residents have not yet received the release letters yet though they have paid the demand note in 2004.

How much will the citizens are benefited by the new decision of NIT remains to be seen. It could also be mentioned here that multi-storied buildings have been constructed in the schemes and layouts falling under NIT. These builders have paid excess amounts as Peripheral Development Charges. Hence it will be these builders who will be benefitted by the reduction in the Peripheral Development Charges.

Sources claimed that this decision could be made under the duress of the builders lobby for their favour.

By Rajeev Ranjan Kushwaha (