Bhopal (Madhya Pradesh): Property rates have been increased up to 200 per cent in Bhopal in the collector’s guideline that was approved on Monday. Steep increase in property rates was witnessed in Kolar and Huzur tehsils.

Property rates of 243 locations including prime locations like Arera Colony from E-1 to E-7, 10 Number Market, Arera Hills, Katara Hills, MP Nagar, Board Office have been affected with this guideline. Rate from 100 per cent to 200 per cent increased at about half -a-dozen locations.

Out of 243 locations, 161 locations are in urban areas and 82 locations are in rural areas.

Builders unhappy

Builders and developers have opposed the property rates hike in Bhopal on Monday. Confederation of Real Estate Developers; Associations of India (CREDAI) state president Manoj Meek said that the government's proposal to increase property rates in the middle of the financial year is very unfortunate. This move will not only discourage investment in the state, but will also put an additional burden on property buyers in cities like Bhopal as the property rates are higher than the actual ones.

Increasing rates will directly increase property tax, in such a situation it will be a challenge for the government to face the anger of the general public.

Increasing the government rates of a particular area by registering a property at higher rates cannot be justified. Increasing the rates by 200 percent at more than 200 locations is definitely objectionable.

CREDAI Bhopal including CREDAI MP strongly opposes this proposal and wants to clarify on the basis of best accepted business principles that such decisions will more likely cause extensive losses in the state with the highest stamp duty rather than a normal increase in revenue.

Similarly, P Raju, MD Signature developer, said, “It is unfortunate that property rates have been increased in mid financial years. Increasing the rates by 200 percent at more than 200 locations is definitely objectionable.”