Owners of old grant bungalows (OGBs) located in the Secunderabad Cantonment, will soon be issued notices with a huge hike in property tax assessment.
The Secunderabad Cantonment Board (SCB) officials completed an assessment of 86 old grant bungalows (OGBs) of the British-era as part of the triennial revision, i.e. between 2018 and 2022.
“Notices will be served to all the owners of these bungalows in a day or two. They will be given 30 days to submit objections,” Secunderabad Cantonment Board deputy chief executive officer, Vijaykumar Balan Nair told STOI.
Though, the defence estates office, Telangana circle is a custodian of old grant bungalows, the SCB has been collecting property tax for decades, he said.
Agreeing that most of the OGBs are using their open spaces for commercial purpose, the Secunderabad Cantonment Board official said that the tax department made an assessment solely based on the commercial tariff. The range per square meter is between Rs 4 and Rs 10, added the official.
Most of the old grant bungalows are located in Sikh Village while few are in Balamrai, Bowenpally and other prime areas.
Several old grant bungalows have given their open spaces to function halls, furniture showrooms, car showrooms. They collect rent in lakhs.
The rent of a function hall starts from Rs 1.5 lakh and goes up to Rs 10 lakh per day.
On an average, the owners of these old grant bungalows earn Rs 2 to Rs 10 crore per annum only on rentals.
Secunderabad Cantonment Board officials who set their eyes on old grant bungalows are expecting huge revenue through the triennial revision assessment.
“We are expecting nearly Rs 3 crore revenue,” said SCB senior tax official.
Agreeing that most of the OGBs are using their open spaces for commercial purpose, the SCB official said tax department made assessment solely based on the commercial tariff