No refund for conversion charges of commercial units

No refund for conversion charges of commercial units
05/12/2018 , by , in News/Views

South Delhi Municipal Corporation clarified on Monday that no exemption from conversion charge payment will be given to even those shopkeepers who are running establishments from commercial plots in local shopping centers.

SDMC commissioner Puneet Kumar Goel said even commercial units was not purely commercial. “These were commercial plots with a standard plan where the ground floor was commercial and upper floors were residential. If someone is running a unit with 100 Floor Area Ratio, they need not pay conversion charges, but everyone else needs to pay them. The corporation will not be refunding any deposited money,” he said.

The commissioner said that a confusion regarding these plots had risen in 53 markets. “Clarification has come from the Union urban development ministry and if required, an amendment will also be done,” the commissioner added.

The south civic body’s explanation came following allegations by the opposition parties, who claimed that the civic body was “secretly” pursuing DDA and the urban development ministry regarding amendment to the master plan so that no refunds could be made to traders. “Why are delegations of ex-mayor Subhash Arya meeting the DDA on behalf of SDMC? Why is the standing committee or the House not being consulted on such a major issue? The Gazette of India cannot be changed merely by citing commissioner’s letter,” opposition councillor Abhishek Dutt said.

He added that Section 5C of MPD amendments, issued in June 2018, clearly states that “local shopping centers, which are already under commercial use zone, are not liable to pay any conversion charges.”

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