The Ahmedabad Municipal Corporation (AMC) has introduced a tax-linked policy to reduce roadside congestion, complying with high court directives that prohibit parking outside commercial complexes. The AMC has sent notices to 200 major establishments—including malls, multiplexes, and luxury hotels—offering a 100% property tax exemption on parking areas if they open their private basement parking to the public.
High Court Mandate and Compliance
According to a senior AMC official, "The high court has ruled that vehicles parked on the road adjacent to commercial complexes are the responsibility of the premises holders." This mandate extends to hospitals, private institutions, and religious places. The AMC's estate and tax departments have issued joint notices, requiring properties to register available slots on the 'Ahmedapark' app. Citizens can park free of charge in these slots.
Deadline and Consequences
Establishments have a 60-day window to enroll. Another senior official warned, "If they do not enrol in the app and open their spaces, we will begin charging tax on those parking areas." Compliance is mandatory, and failure will result in new taxes on previously exempt parking areas.
Concerns from Luxury Hotels
The rollout has faced issues, particularly from five-star hotels concerned about security and liability. One AMC official described the core objection: "The hotels are saying, if someone hides a bomb how are they responsible?" Beyond security, owners worry about customer displacement—opening basements to the general public could leave paying guests without parking during peak hours. Some luxury establishments have indicated they would rather absorb the additional tax, estimated at Rs 2 lakh to Rs 3 lakh, than compromise security or guest experience.
Flexible Models Under Consideration
To address concerns, AMC officials are exploring more flexible models. One proposal would let owners open only their excess capacity—roughly 20-30% of total space—through the app, rather than entire basements. This approach aims to balance public access with property owner interests.
Key Points of the Policy
- Following high court orders, the AMC holds commercial owners responsible for clearing roadside congestion caused by their visitors.
- Owners get a 100% property tax waiver on parking floors if they offer 'open to all' public parking.
- Integration with the 'Ahmedapark' app is mandatory to show real-time slot availability to the public.
- A 60-day deadline is given; failure to open spaces will result in new taxes on previously exempt parking areas.
