Date:27/03/2008 URL: http://www.thehindu.com/2008/03/27/stories/2008032760520100.htm

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Infrastructure charges on buildings remain the same

R.K. Radhakrishnan and A.Srivathsan

Rates decided in 2007 to stay

Rs. 500 per sq.m. for IT, commercial buildings
Practice of collecting Rs. 100 per sq.m. will end

CHENNAI: The State government has decided not to reduce infrastructure charges on special and multi-storied buildings, as demanded by builders.

According to an official, the government considered the issue of reduction of charges threadbare and the findings were placed before the Cabinet for a decision.

Following Cabinet deliberations, the government has decided not to reduce the rates decided in June 2007.

Government sources say that the prevailing arrangement of collecting Rs.100 per sq. m and processing the building applications will end once the decision is published as an order.

The charges as first proposed in June 2007 will remain.

Order modified

The June 2007 order recommended that in Chennai, the Directorate of Town and Country planning (DTCP) and Chennai Metropolitan Development Authority (CMDA) could fix differential rates within the range fixed by the government for their respective areas. This has now been modified.

The authorities now have to take government consent before finalising any differential rate.

Complaint

“Basically, the element of discretion has been removed from officials so that there is no room for any complaint or wrong doing,” a source said.

In June 2007, the Tamil Nadu government fixed Rs.500 per sq.m for commercial and IT buildings and Rs.1,000 for multi-storied buildings, Rs.200 for institutional buildings and Rs.300 for industrial buildings as infrastructure and amenities charges.

Interim stay

Foundation for Fair Practices in Property Development (FAIRPRO), a group of property developers, challenged this order and obtained an interim stay from the High Court.

In February 2008, after receiving representations from the builders, the government announced that a reduction in infrastructure charges would be considered.

Permission

Till a final decision is taken, it suggested that the builders make a payment of Rs.100 per sq. m. and file their applications for planning and building permission.

The applicants were asked to provide an indemnity bond to pay the remaining charges as per the final decision.