MCD changes building plan sanction fee, houses to cost more in east & south Delhi

NEW DELHI: Municipal Corporation of Delhi (MCD) has decided to levy a compensatory regulatory
charge, an additional fee to be paid to get the building plan sanctioned for all properties, including
residential ones, to strengthen the civic infrastructure.
Officials said the fee was so far levied in the areas under the erstwhile north corporation, and since the
unification of the three civic bodies, there was a constant demand for its implementation across the MCD
jurisdiction. “The decision will automatically increase the cost of constructing houses in Delhi, especially
in south and east Delhi, where this additional charge wasn’t levied earlier,” said the official.

The unified building by-laws mandate MCD to impose charges while sanctioning the building plans. The
collected amount will be used for maintenance and development of the civic infrastructure in the MCD areas, including regularised colonies and village abadis. The charges on the proposed built-up area of a property will be determined based on the prevailing circle rate in that colony. For example, for a residential property in category A with a plot size up to 250 square metre, the charge will be Rs 387 per square metre. It will be Rs 122.70 per sqm for a similar plot in category B, Rs 79.90 in category C, Rs 63.80 in category D and Rs 35 in category E. For residential plots
over 250 sq metre, Rs 774 per sqm will be charged in category A, Rs 245.50 in category B, Rs 159.80 in category C, Rs 127 in category D and Rs 70 in category E.

Civic officials came with the proposal for the uniform charge on September 5, but the House was
adjourned. Several institutions, which are developed on huge plots while the buildings occupy only a
portion, also demanded rationalisation of the charges that were levied on the entire plot. “Based on these
suggestions, it was decided that the charges would be calculated on the basis of the total built-up area rather than the size of the entire plot,” said the official. The proposal was tabled in the House again on Tuesday and it was approved. The charges will be levied while getting the building sanction plan approved from MCD for a new or an additional structure, it stated

After Delhi Master Plan 2021, the number of permissible dwelling units has increased substantially and
multiple units are being constructed by redeveloping single-unit buildings. “This has resulted in further
densification of areas and requirement of funds to augment the existing infrastructure,” the proposal
stated.