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NMC adjusts lease rates following state government notification
Real Estate

NMC adjusts lease rates following state government notification

07 Dec 2023 2 Min Read CW Team
The state government has recently issued a notification, modifying the lease rates for properties under civic bodies. Consequently, the Nashik Municipal Corporation (NMC) has opted to adjust the rates for its leased properties intended for commercial and social purposes.

NMC officials reported that the government has reduced the rates for properties allocated to social organisations from 8% of the Ready Reckoner (RR) rate to 0.5%. Similarly, lease rates for commercial properties have been adjusted from 8% of the RR rate to 0.7%.

The new rates will come into effect after the expiration of the current agreement period with tenants. A committee, led by the civic chief, has been established to determine the new rates for properties after the conclusion of the existing agreements.

NMC manages 1,900 commercial galas/shops and 1,075 other properties allocated to social outfits and NGOs for social causes. Previously, the lease rate stood at 2.5% of the Ready Reckoner (RR) rate. However, in 2020, the state government mandated all civic bodies to set lease rates at 8% of the RR. Consequently, NMC adjusted its lease rates in line with the government order that same year.

Responding to a calling attention motion during the state assembly session in July of this year, MLA Devyani Pharande highlighted the need to revise the lease rates for NMC properties. In reply, State Industry Minister Uday Samant assured that the lease rates for properties under municipal corporations and other civic bodies would be promptly addressed.

Subsequently, the state government issued a recent notification, reducing the lease rates for civic body properties, encompassing both commercial and those designated for social causes and leased to social outfits or NGOs.
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The state government has recently issued a notification, modifying the lease rates for properties under civic bodies. Consequently, the Nashik Municipal Corporation (NMC) has opted to adjust the rates for its leased properties intended for commercial and social purposes.NMC officials reported that the government has reduced the rates for properties allocated to social organisations from 8% of the Ready Reckoner (RR) rate to 0.5%. Similarly, lease rates for commercial properties have been adjusted from 8% of the RR rate to 0.7%.The new rates will come into effect after the expiration of the current agreement period with tenants. A committee, led by the civic chief, has been established to determine the new rates for properties after the conclusion of the existing agreements.NMC manages 1,900 commercial galas/shops and 1,075 other properties allocated to social outfits and NGOs for social causes. Previously, the lease rate stood at 2.5% of the Ready Reckoner (RR) rate. However, in 2020, the state government mandated all civic bodies to set lease rates at 8% of the RR. Consequently, NMC adjusted its lease rates in line with the government order that same year.Responding to a calling attention motion during the state assembly session in July of this year, MLA Devyani Pharande highlighted the need to revise the lease rates for NMC properties. In reply, State Industry Minister Uday Samant assured that the lease rates for properties under municipal corporations and other civic bodies would be promptly addressed.Subsequently, the state government issued a recent notification, reducing the lease rates for civic body properties, encompassing both commercial and those designated for social causes and leased to social outfits or NGOs.

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