The Hush Post| 10:15 am|one-minute-read|
From now onwards, increasing the floor area ratio (FAR) will cost industrialists and owners of commercial properties in Chandigarh about 20 times more. This, since the UT Administration has decided to link the charges with the current collector rates on the basis of the formula adopted in the case of educational institutes.
As per the letter, the Floor Area Ratio amount is to be charged in four yearly installments. The installments are to be paid with 12 per cent interest — either 100 per cent may be taken upfront within 15 days or 20 per cent will be taken within seven days and the rest 80 per cent in four annual installments with 12 per cent interest.
The property owners say it will kill the trade
The new rates have created panic among property owners. They said this would kill the trade. As per the new rates, industrialists will now have to shell out Rs 80 lakh for increasing FAR from 0.75 to 1 in the case of a two kanal plots, which was earlier only Rs 4.50 lakh.
The Finance Department of the Administration, in a letter to the Estate Office, had clarified that the formula used for fixing charges for additional FAR, notified in May 24, 2018, in the case of Goswami Ganesh Dutt Sanatan Dharam College, would now be applicable to all categories. These are commercial, industrial, social, religious and educational in the city.
Besides, it will also be applicable to different categories as decided by the Urban Planning Department from time to time.
What is FAR
FAR is the ratio of the total area of building floor to area of land it is built on.
Increasing FAR from 0.75 to 1 (industrial plots)
Plot area Current rates New rates
1 kanal Rs 2,25,000 Rs 38,25,000
2 kanal Rs 4,50,000 Rs 76,50,000
3 kanal Rs 6,75,000 Rs 1,14,75,000
4 kanal Rs 9,00,000 Rs 1,53,00,000