The state government has decided to crack the whip on unauthorised
constructions by levying stiff penalties on builders by amending
relevant sections of the Acts.

As per the bill introduced by MAUD
minister M Maheedhar Reddy in the Assembly on Tuesday, for unauthorised
floors over and above the permitted number of floors in a sanctioned
plan or for total unauthorised construction, the penalty will be equal
to  total property tax.

The municipal administration and urban
development (MAUD) department has decided to amend the Greater Hyderabad
Municipal Corporations Act 1955, AP Municipalities Act 1965,
Visakhapatnam Municipal Corporation Act 1979,  Vijayawada Municipal
Corporation Act 1981 and the AP Municipal Corporations Act 1994 in this
regard.

Corporations and municipalities will be empowered to levy
25 percent of the property tax as penalty up to 10 percent violation of
permissible setbacks only in respect of floors permitted in a sanctioned
plan.

In a situation where more than 10 percent violations of
permissible setbacks exist only in respect of floors permitted in a
sanctioned plan, 50 percent of the property tax will be levied as
penalty.

Similarly, for unauthorised floors over permitted floors
in a sanctioned plan or for total unauthorised construction, 100 percent
of property tax as penalty will be levied.

On the issue of
limitation for recovery of property tax dues,  corporations should not
make distraint, no prosecution should be commenced and no suit be
instituted in respect of any sum due to the corporation after the
expiration of three years from the date on which distraint was made or
after the  expiration of six years from the date on which prosecution
will be commenced or to provide limitation for recovery of property tax
by filing civil suit  up to nine years from the date when the tax
becomes due.

The proposed amendment will also provide a rebate of 5
percent of property tax in respect of assessments where property tax
for the entire current financial year is paid before April 30 as an
incentive.

Also to provide a time limit of 90 days from the
commencement of the half-year for payment of property tax without
levying a simple interest.

The meetings of the corporation will
now be held once in every three months and minutes of the corporation
should be signed by the presiding authority.

The general body of
civic body can now authorise works worth Rs 5 crore (now the limit is Rs
2 crore). Besides, the standing committee will now be empowered to
clear works which have a net value of up to Rs 2 crore (Rs 50 lakh) and
the commissioner Rs 50 lakh (Rs 20 lakh).