99-year lease of Novelty cinema land finalised

The land has been leased out for 99 years. As per the arrangement, the civic body will receive Rs 34.75 crore and also earn Rs 88 lakh as yearly rent.
The site where Novelty cinema hall once stood in Chandi Chowk. (Photo | EPS)
The site where Novelty cinema hall once stood in Chandi Chowk. (Photo | EPS)

NEW DELHI:  The North Delhi Municipal Corporation (North DMC) has finally approved a proposal to hand over a piece of land measuring 1,157 square metres on which once stood the Novelty cinema hall, one of the oldest in the city, to a private player. 

The land has been leased out for 99 years. As per the arrangement, the civic body will receive Rs 34.75 crore and also earn Rs 88 lakh as yearly rent. The cinema hall was demolished last year just before the first lockdown. The chairman of the standing committee of North DMC, Jogi Ram Jain said the decision was taken to ease the financial burden of the civic agency.

“The corporation has given the land on leasehold basis with 2.5 per cent rent. The corporation will earn Rs 88 lakh every year as rent. As per the conditions laid out, only 50 per cent area of the total land can be used for construction and the floor area ratio is 125. Hence, only a two-and-a-half storey building can be built,” said Jain.

The civic body has been struggling to redevelop the property since 2000 when it took over the premises from Vijay Narain Seth after the lease had expired. Initially, the municipal corporation wanted to revamp it as a cinema-cum-commercial complex with the help of a corporate giant. After trifurcation of the erstwhile Municipal Corporation of Delhi (MCD) in 2012, Novelty cinema building was transferred to North DMC, which had proposed to convert into a spice market. However, both plans couldn’t take off.

The opposition AAP in the civic body had alleged corruption in the process. It said that because the BJP-ruled MCD couldn’t manage its resources, the agency is selling its prime properties at throw away prices. However, Jain refuted the allegations. He said according to the commercial rate, the cost of the said land is only about Rs 24 crore.

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