The Gurugram Metro Rail Limited (GMRL) has proposed an additional 0.5 percent surcharge on stamp duty for property transactions in the city.
GMRL also sought an additional 35 percent share of the transit-oriented development (TOD) fees collected by the Haryana government for the extra floor area ratio (FAR) for properties which are located around 500-800 metres away from metro alignments, officials said on Friday.
While the developments could make buying property in the city slightly expensive, government officials said the proposals were still under discussion.
An official said the proposal to impose a metro cess and share it with GMRL was discussed on Friday at a committee meeting chaired by Haryana chief secretary Anurag Rastogi in Chandigarh.
Currently, the Haryana government charges stamp duty between 5 to 7 percent of the property value in Gurugram, depending on the property’s location and the buyer (a 2 percent rebate for female buyers). For infrastructure development it imposed a 2 percent cess on the stamp duty charged from property buyers, of which 1 percent goes to the Municipal Corporation of Gurugram (MCG) and the other 1 percent goes to the Gurugram Metropolitan Development Authority (GMDA) for infrastructure development.
According to a senior town and country planning official, the cess on stamp duty funds infrastructure projects for both agencies as it is a dedicated revenue stream.
When asked about the proposed metro cess, a senior GMRL official said the proposal is part of the approved detailed project report (DPR) of the Gurugram Metro, where revenue is envisaged to be generated as value capture finance along the transit corridors due to the creation of high-density mixed-use developments.
The official said the estimated revenue from TOD has been determined through Value Capture Finance (VCF) — a premium on the sale of additional FAR within the TOD zone, and a 0.5 percent surcharge on stamp duty has been proposed for revenue estimation as part of the TOD study.
“It has been proposed that 35 percent of yearly projected revenue collection from VCF tools will accrue to Gurgaon Metro. The remaining 65 percent may be used as allied investments in expanding utility capacity to densify areas around the metro stations,” the official added.
GMRL has also proposed that, in exchange for granting additional FAR under the TOD policy near the metro corridor, a portion of the revenue currently collected by the town and country planning department, MCG, or the Haryana Urban Development Authority (HSVP) be allocated to the metro project.
“We have requested that 35% of proceeds be transferred for metro operations and the remaining 65% be utilised for infrastructure in areas along the metro corridor. The metro needs these revenue streams to ensure financial viability. This decision is likely to be taken soon,” said the GMRL official.
A senior Haryana government official present in the meeting, however, said the proposal to impose a metro surcharge and related financial issues were only in the initial stages. The finance and revenue departments will examine these details before any decision is made.
“These are major policy decisions and the state government will take a call on it but GMRL has made a proposal for revenue share in stamp duty and the matter was discussed in detail,” he said, adding that a report will be sought from the respective department to decide the future course of action.
