South Delhi civic body to levy additional charge during building plans sanctions

NEW DELHI: Desperate to generate more revenue, South Delhi Municipal Corporation has issued a circular to levy an additional compensatory regulatory charge at the time of sanctioning plans for new buildings as well as any addition/alteration.

The highest slab of Rs 15,480 per square metre — for agricultural/low-density residential area (LDRA) land in A category — will now translate into an additional Rs 15.4-lakh charge for a 100 square metre plot over and above the building plan fees.

After clearing the proposal through the standing committee last November, the cash-strapped civic body has taken the “anticipatory approval route” through the mayor before getting it passed in its House. “The mayor has accorded in-anticipation approval vide her orders on January 14, 2021,” reads the circular issued by the office of the additional commissioner (engineering).

The new charge is required to keep development work going as Delhi government has drained the corporations of grants and allocations, claimed officials. To take up effective development work in the national capital, the charges have been approved for fresh sanction and alteration/addition of building plans, the order states.

The one-time fee varies from 0.1% to 2% of the circle rates for various categories like residential, commercial, LDRA, and agricultural land. The charge will be calculated at the rate of 0.2% of the circle rates for plots measuring more than 50 square metre and 0.1% for plots less than 50 square metre. In residential areas, the charge may vary from Rs 1,548 per square metre in A category to Rs 491 in B category and Rs 319 C category colonies. The circle rates in Delhi vary according to the category of a colony. The circular states the charges will be adjusted with any change in the circle rates.

The impact of the new charge will be double on industrial units and triple for consumers applying for a building plan for commercial units.

In the last couple of months, the cash-strapped municipal corporations in Delhi have tried various routes, such as new taxes, user charges, increase in licensing fees and desealing fees, to augment revenue. A proposal to utilise parks for commercial purposes has even kicked up a controversy.

The compensatory fee proposal from the municipal commissioner had stated that such a development fee was already being levied in cities like Mumbai, Kolkata, Nagpur and Pune by the name of development cess or even drainage development charges. “While sanctioning a building plan, various charges are taken, but the corporation also has to take care of unauthorised areas, special areas, villages, etc almost for free,” said a senior official.

The proposal had argued that following the master plan 2021, the densification of areas has gone up due to the notification of 2,500 commercial and mixed land-use streets and multi-fold increase in dwelling units, leading to more demand for services.