Properties among costliest in world but BMC earns just Rs 26 crore: study

The ongoing asset listing survey—90 per cent of the work has been completed—being carried out by the Estate Department of the civic body has thrown up these and other such interesting details.

Civic officials have so far managed to list all the data ranging from the headquarters at CST, 24 ward offices, five major hospitals and 16 peripheral hospitals, theatres, swimming pools to water reservoirs in Thane and Shahapur district. But the vital task of verification and valuation is still on, and this will precisely reveal the market value of the BMC’s assets, officials said.

“Most of these properties were leased out during the British Raj. Similarly, large and small tracts of land which belonged to the BMC in 1900s, but which it found difficult to maintain, were given out as vacant land tenancy (VLT) and tenanted property,” said an official from the Estate Department. Since the rent rates or lease rates were decided in the early 20th century, the lessees continue to pay the same rate now, the official added.

“So despite the Estate Department owning large tracts of land, its income from them as rent is a few crores,” said the official. According to officials, between 1900 and 1920 and later till 1950, the BMC leased out land to different users—residential, educational, charitable, industrial and combined users (shops, offices, godowns and restaurants).

In case of leased out properties, Joint Municipal Commissioner (Improvement) V Radha said, the leases would have lapsed several times but BMC remained unaware of it. Poor track record resulted in misuse of these properties, she said. “These lands are costly but often result in loss of revenue. Lack of adequate facts also foiled our bid to bring in a policy change,” she said.

Now, armed with exact facts and figures, the civic administration aims at bringing in number of reforms, including new policies, for these properties—both leased and tenanted.

“We will match the data of vacant lease tenancy and tenanted properties with the development plan and see whether we can use them for public welfare by creating open spaces or recreational grounds or playgrounds. Till now, there was a vacuum for introducing a policy on such lands,” Radha said.

The civic administration is conducting the asset survey for its 68 departments—it will list assets of each section, including furniture (chairs, tables, ceiling fans), plant and machinery (rollers-dumpers, fire engines, water plants), desktops (computers and other miscellaneous), books and periodicals (civic school and medical colleges) and livestock (zoo and hospitals).

What began as an exercise initiated by Additional Municipal Commissioner (projects) Manu Kumar Shrivastava to identify the assets of the civic body has now turned into humungous task of listing each of the assets to verify and later valuate them. Radha, who is currently in charge of the project, said the asset listing survey was important.

BMC properties

• Vacant plots: 3,752 -of the total 0f 4,451-after redevelopment and acquisition by Slum Rehabilitation Authority (SRA)

• Leased out properties: 4,233, including 247 schedule W, X, Y and Z properties belonging to the state government but given to the BMC

• Tenanted: 46,618, most of them in E, F/South and F/North wards

• Staff quarters: 2,915 flats in 456 buildings