• How to now if my property is fully commercial or not?

I have a 3 and a half story buliding in ajay enclave, west delhi
the ground floor is rented to a company
mezanine , first & second floor are bulit according to residential activity
but i beleive that the complete buliding is commercial
Even in the house tax papers in the type of property it is mentioned as commercial genral

so can it be rented for a commercial activity?
what can be done against us if we rent it out for a commercial activity if the buliding is not commercial
Asked 7 years ago in Property Law
Religion: Hindu

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6 Answers

your property tax assessment bil would show if it is residential or commercial

2)you can rent it out for commercial purposes

3) if building is not commercial then you have to apply to municipal corporation for assessment for commercial purposes

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

1. Commercial activity can be carried on even if residential proeprty. There is no embargo on it only because the building is residential.

2 So in your case since the complex is shown to be commercial there would not be any hindrance to carry on commercial activity.

So give this property on rent.

Devajyoti Barman
Advocate, Kolkata
22920 Answers
498 Consultations

5.0 on 5.0

Dear Concerned,

You property if Residential - doing any kind of commercial activity is illegal , however it seems that your property is in mix land use ie both can be used for residential or commercial - check with your areas development office and you will get to know the exact use.

If a residential property is used in commercial you will have to pay penalties if levid by the municipality / authority.

Best of luck

Atulay Nehra
Advocate, Noida
1309 Answers
58 Consultations

5.0 on 5.0

1) you should apply before local muncipal corporation to check assessment of your building

2) if If the activity is without a license, it is per se unlawful and, Therefore, any disturbance which can be described as intolerable is likely to lead to the grant of an interim injunction to restrain the carrying on of such activity

3) Para 15.9.vi provides for penal action if a property is found by the local authority without registration or in violation of the provisions of the MPD 2021, which states that in addition to other penal actions available under the relevant Act (DMC Act, 1957 in the present case), the owner of such property is liable to pay, to the local body, a penalty amounting to 10 times the annual conversion charges for mixed-use.

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

The circle rates applicable to a particular property depend on various factors. For instance, circle rates differ depending on whether the prescribed usage of the land/property is residential, commercial, industrial or any other. In Delhi, circle rates are much higher for commercial and industrial land as compared to residential. The rates also differ on the basis of which category of locality the property is situated in. In Delhi, the government has divided all localities into eight categories, ranging from Category A to H. Each category has a different circle rate.

The sanction of the municipality for construction of residential apartment in itself is a condition that no commercial activity can happen in such apartment except the owner can use such flat for his own business or profession.

In cases where zoning laws and the co-operative housing society in question permit it, there can be cases where running a business from home is viable.

Utilizing 20% of the space in a residential flat is legally permissible as long as the business in question falls within certain categories.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

I just want to know what can be the strictest action taken against us?

That is can they seal my building for not informing mcd about being rented or for being commercially rented?

And if the levy a fine how much will it be?

Also whom exactly should i contact to Get the status of buliding checked?

The authorities may put a seal to the entire building where the commercial activities are going on in the residential place , the fine or remedy to it shall be let known once you apply for releasing it.

It is your own property so you should now the status of your property, what is the tax being paid by you?

The due diligence period includes scrutiny of the seller’s documents and your own independent enquiry and investigation about the seller and property in question

Preliminary due diligence is very important for buying commercial and residential property because buyer can properly scrutinize the documents of property and value to formulation. Most of the documents that can allow you to ascertain the property’s net profitability is available with the buyer. When a person is valuing the commercial property, income production is the main reason. The important ratio to determine in commercial property is the Net Operating Income. The important reason for due diligence of commercial property is to ensure that the buyer has all knowledge about his purchase.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

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