LHC voids DC rate hike for Kottha Kalan

Petitioner argues DC is authorised to hike rates by a maximum of 10% annually

RAWALPINDI:

Justice Rasal Hassan Syed of the Rawalpindi Bench of the Lahore High Court (LHC) has declared null and void the decision by the District Collector (Deputy Commissioner) of Rawalpindi to drastically increase the official DC (Deputy Commissioner) property valuation rates for the historic British-era neighbourhoods of Kottha Kalan I and Kottha Kalan II, effective from July 1, 2024.

In his verdict, Justice Syed ordered the DC to give a proper hearing to senior bar member Advocate Asif Chaudhry, the petitioner, and to reassess the DC rate for the said area on merit within one month. The petitioner has also been directed to appear before the DC and present his arguments.

Advocate Asif Chaudhry contended in court that Kottha Kalan I and II fall within the municipal limits of Rawalpindi. Until June 30, 2024, the official DC rate for residential properties in Mouza Kottha Kalan ranged from Rs225,000 to Rs372,000. However, this rate was arbitrarily increased by 300% to Rs2,067,000 for residential properties, and Rs4,286,300 for commercial properties—reportedly the highest rate across all Mouzas in Rawalpindi.

The petitioner argued that, according to regulations, the District Collector is authorised to increase property rates by a maximum of 10% annually at the start of each new fiscal year. However, for the first time in Rawalpindi's history, the rate was hiked by an unjustified 300%, leading to a complete halt in property transactions — both domestic and commercial — in the affected areas.

Advocate Chaudhry requested the court to annul the excessive increase and direct the District Collector to revise the rate within legal limits, not exceeding 10%. The court upheld this stance, revoked the existing order of the District Collector, and instructed that a fresh, merit-based decision be made within one month in accordance with the rules.

The court also directed the petitioner to formally appear before the District Collector to present his constitutional and legal arguments.

As the new fiscal year beginning July 1, 2025, approaches, the District Collector is also tasked with determining the official property valuation rates for the 2025-2026 financial year.