Poor paying double building plan approval fee than affluent citizens, Real Estate News, ET Real Estate

Nagpur: Due to two planning authorities in the city, poor people constructing houses in underdeveloped areas are forced to pay twice the building plan approval fee as compared to what residents of posh areas pay.

The state government amended the Maharashtra Regional and Town Planning (MRTP) Act on July 1, 2016, making provision for doubling the building plan approval fee across the city so that Nagpur Municipal Corporation (NMC) and Nagpur Improvement Trust (NIT) can bear its 5% share in each metro rail project.

The NMC and NIT had doubled the building plan approval fee with retrospective effect from July 1, 2016, to January 13, 2021, and June 1, 2021, respectively.

But almost two months ago, on January 1, the NMC reduced the building plan approval fee by 50%, while the Nagpur Improvement Trust (NIT) is yet to take a decision.

Former Leader of Opposition in NMC, Sanjay MahakalkarThe BJP-led government in the state is allegedly responsible for looting the poor people. “Posh areas come under NMC limits, while NIT is the planning authority for Gunthewari areas where almost all citizens are economically weak. These people cannot buy plots in approved layouts or flats and are forced to buy small plots in unauthorized layouts and take loans to build their dream homes. NIT should immediately give relief to the poor.

NIT board will have to take a decision on bringing the fee at par with NMC. NIT trustee and South Nagpur MLA Mohan Mate did not respond to TOI’s calls and messages in this regard.

The NMC and NIT did not revise the charges until four years after the government amended the MRTP Act on July 1, 2016. In 2020, the NMC sought the government’s opinion on whether it could levy the double fee with retrospective effect from July 1, 2016. The government gave its consent on November 3, 2020.

NMC issued a notice dated January 13, 2021, increasing the fee by 100% with retrospective effect. increased from 2% to 4% of the ready reckoner value of the land residential 4% to 8% for structure and commercial buildings.
NIT has also doubled the building plan approval fee from June 1, 2021.

The two planning authorities also started recovering the difference in amount from those who got sanctioned plans after July 1, 2016.

On July 22, 2021, the NMC General Body passed a resolution to revoke the decision to collect the fee with retrospective effect, citing the revised building plan fee being high.

But the civic chief urged the government to rescind the decision of the general body, saying it would result in huge financial loss to both the NMC and the government.

The government supported GB’s resolution on December 29 last year and the NMC reduced the fee by 50% from January 1.

Mahakalkar said that the government should have given instructions to the NIT in this regard as well. “Besides the two agencies, it is also the responsibility of the government to avoid anomalies in tariffs and dual policy,” he added.