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The Lucknow Municipal Corporation (LMC) will review a proposal for a new mutation fee structure in an upcoming executive committee meeting, potentially setting a maximum fee of INR 15,000. Currently, the fee is 1% of a property's value, leading to high charges for property owners. The proposed tiered system would categorise properties by value, aiming to ease financial burdens. Concerns have been raised about the higher charges compared to existing fees set by the Lucknow Development Authority. In response to a state government directive for reduced fees, the LMC seeks to streamline the mutation process, addressing delays and improving efficiency.
The Lucknow Municipal Corporation (LMC) is set to review a proposal for a new mutation fee structure during an upcoming executive committee meeting. This plan suggests a maximum fee of INR 15,000, which could significantly impact property owners in the city. The current system charges 1% of a property's value for mutation fees, meaning that a property valued at INR 1 crore incurs a fee of INR 1 lakh. The proposed changes aim to ease this financial burden. Advertisement
The new tiered fee system would categorise properties into different value ranges, each with its own specific fee. Currently, the maximum mutation fee for properties under the Lucknow Development Authority (LDA) and Housing Development departments is INR 10,000. This proposed increase has raised concerns among property owners and local councillors, who fear that the new charges may be higher than those currently imposed by the LDA and Housing Development departments.
The push for a new fee structure comes in response to a directive from the state government last year, which called for a reduction in mutation fees across the board. Mayor Sushma Kharakwal has emphasised the importance of establishing a clear framework for these charges to ensure fairness and transparency in the process. The municipal corporation has used a slab-based fee system since 2014, but the proposed changes could mark a significant shift in how mutation fees are calculated.
Many local councilors are expected to voice their concerns during the meeting, particularly regarding the potential financial impact on residents. Some property owners express worry that the new structure may lead to higher costs, making it more difficult for them to complete property transactions. This situation is particularly concerning in a city where property prices have been steadily rising.
In addition to the proposed fee changes, the LMC is also looking to improve the overall efficiency of the mutation process. Delays in property registrations and mutations have been a common complaint among residents. By streamlining procedures and reducing fees, the municipal corporation hopes to encourage more people to formalise their property ownership, which could lead to better urban planning and development in Lucknow.
As the executive committee prepares to discuss the proposal, it remains to be seen how the new fee structure will be received by the public and local representatives. The outcome of this meeting could have lasting implications for property transactions in Lucknow, shaping the landscape of real estate in the city for years to come.
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