Urban local bodies will now be able to rent out or lease their property, land and buildings owned and managed by them at market rates only. It has also been made mandatory to take approval from the government in cases of renewal of properties allotted to the bodies on lease. Urban Development Secretary Nitesh Kumar Jha has issued orders to all municipal bodies in this regard. This step has been taken with a view to improving the financial condition of urban bodies.
Rates are much lower than the market
Municipal Corporations, Municipal Councils and Nagar Panchayats rent out or lease out their owned buildings, shops and other properties. In most cases, it has been found that these rates are much lower than the market rate. In such a situation, the bodies are not able to get the expected revenue from them and the purpose for which the properties have been leased or rented is not achieved. As a result, the bodies have to depend on the government for the source of income.
Urban Development Secretary Nitesh Kumar Jha sent the order
In the order sent to all the municipal bodies by Urban Development Secretary Nitesh Kumar Jha, it has been said that the bodies are giving their properties on rent or lease at much lower rates than the market. The properties allotted on lease whose lease has expired are also being renewed at rates lower than the market rates without the approval of the government. It has been clarified in the order that the proposals related to lease renewal will not be renewed without the approval of the government. Also, buildings, land, commercial buildings etc. will not be allotted on rent or lease at rates lower than the prevailing market rate. It will be allotted at market value or higher rates.
