GHAZIABAD (Metro Rail News): On Wednesday, the Uttar Pradesh (UP) cabinet approved a proposal that will require developers in cities with upcoming metro and Rapid Rail Transit System (RRTS) services to pay a ‘metro and RRTS cess’. Initially, this charge is expected to be implemented in Ghaziabad and Meerut, where the construction of the RRTS corridor, known as the RapidX corridor, is underway.
The cess is expected to be implemented in Ghaziabad within a 1.5 km radius of the RapidX or metro track. Former chief town planner Asheesh Shivpuri commented, “Nothing has been finalized yet, including the exact area where the cess will be implemented and the rate at which developers will be required to pay.
The Ghaziabad Development Authority (GDA) will likely consider a 1.5km area along the two corridors to impose the cess.”Developers stand to immediately benefit from these projects, he continued. A system should be in place to put the cess into effect. Once a rule is established, the specifics will become more obvious.
In 2014-15, the development authority had previously announced a metro and Hindon elevated road cess of Rs 750/sqm to be imposed on builders. However, 27 builders challenged this move in the Allahabad High Court.
In 2021, the high court ruled in favour of the developers, instructing the GDA to refund approximately Rs 50 crore it had collected until then while approving building layouts.
Gaurav Gupta, the secretary at Credai’s NCR chapter, recalled how the GDA had previously imposed a cess on areas along the Hindon elevated road and the Delhi Metro’s Red Line, asserting that builders in localities such as Raj Nagar Extension would benefit directly from these projects.
“However, the decision was unexpected, which prompted us to move the high court. Nevertheless, the cabinet has now approved the proposal, indicating that it is a policy decision that will likely be implemented in other districts as well. It is not solely the concern of the GDA,” Gupta explained.
He said they haven’t decided whether to return to court yet. “At this time, we are not certain about our choice. Even the possibility of contesting such a judgement is debatable. We will therefore wait for the formal notice,” Gupta said.
