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).