The Khambhaliya Municipality of Devbhumi Dwarka district has long been known as one of those rare civic bodies that hasn’t increased its taxes or rental rates for years. Even though the market value of land and property has continuously risen, the municipality’s elected representatives seem to have ignored the basic economic principle that rates must increase gradually over time.
Discussion in the General Meeting
During the recent general meeting of the Khambhaliya Municipality, an important issue came up regarding the lease and rent agreements of municipal properties worth crores of rupees. It was revealed that several valuable municipal assets have been under private use — both by individuals and local traders — for decades at very minimal rent rates.
Many of these lease agreements were reportedly signed several decades ago, and no revisions have been made since. Some members of the general board argued that this situation is unfair and financially harmful for the city’s development, suggesting that the rent rates should be revised in line with current market standards.
However, the majority of the members voted in favor of keeping the existing rents unchanged, passing a resolution to maintain the old agreements “as is.”
Public and Expert Reactions
Local residents and financial experts have criticized this decision, stating that if the municipality doesn’t revise its revenue structure, it could face severe financial strain in the future. They warned that maintaining low rents for prime properties will reduce municipal income, which could directly impact development projects and essential urban services like sanitation, roads, and water supply.
Also read: Devbhoomi Dwarka Mahakal Gang: Strict Action Taken Under GUJCTOC, 7 Members Arrested
What Lies Ahead?
Analysts believe that this issue is far from over. Growing public pressure may eventually force the Khambhaliya Municipality to reconsider and revise its rental and tax policies. If reforms are delayed, the city could lose out on valuable revenue — revenue that could otherwise be used to improve infrastructure and civic facilities.
In summary, the decision to retain old rent rates for high-value municipal properties has opened up a serious debate in Devbhumi Dwarka. While the move might seem convenient in the short term, experts say it could pose long-term challenges for Khambhaliya’s economic growth and development.