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Relief for lessees, but rising burden on civic finances.

AMC’s 50% Lease Discount Leads to ₹23 Crore Revenue Loss.                                                                                                                                                                                  

The Ahmedabad Municipal Corporation (AMC) has suffered a revenue loss of ₹23 crore over the past two years due to a 50% discount granted on temporary plot leases. Despite the Gujarat government doubling jantri (minimum land valuation) rates from April 15, 2023, AMC’s standing committee decided to continue offering relief on rentals, effectively neutralising the impact of the revised rates. The civic body leases reserved plots across the city to builders, traders, social organisations, and companies for short-term commercial, religious, social, and parking use. While the estate department recently proposed raising the temporary lease rent from 50% to 65% of jantri rates, the standing committee rejected it, citing affordability concerns for lessees. As a result, AMC’s annual income from such leases stands at ₹23 crore against the estimated ₹46 crore, translating into an annual revenue loss of ₹10-12 crore. Officials caution that this policy strains AMC’s financial health.