The last hike was implemented back in 2014 following which, in 2021, the BMC had floated a proposal of hiking the rates to Rs 3 per square feet. (File)The Brihanmumbai Municipal Corporation (BMC) has postponed the hike in rent of civic-owned properties till June 2023. There are nearly 3,500 BMC-owned properties in Mumbai, which house 45,000 tenants. Most of these buildings are in south Mumbai and many of them came under BMC’s ownership after the Bombay Improvement Trust was dissolved back in 1925.
These buildings were reconstructed to provide affordable housing to mill workers and members of variable low-income groups, who had come to the city to earn their livelihood.
As per the current formula of rent, the tenants are charged between Rs 100 and Rs 250 per month. The last hike was implemented back in 2014 following which, in 2021, the BMC had floated a proposal of hiking the rates to Rs 3 per square feet. If this new formula is implemented, the tenants will have to pay between Rs 600 and Rs 750 for their flat.
The proposal of hiking the rent had drawn criticism. “We have now decided to postpone the hike by one year, since many tenants are yet to recover from the financial losses they faced during the pandemic-induced lockdown. A call will be taken later on whether a new formula for the hike in rent will be calculated or the same will be implemented next year,” said a senior official.
Ravi Raja, former leader of opposition and Congress corporator, who had opposed the proposal, said the BMC should abolish the stamp duty it charges tenants. “By renting a property, the tenants don’t get the ownership of the building, yet they need to pay 6% of the ready reckoner rate as stamp duty. The BMC should abolish this rule…,” said Raja.