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Cap on penalties for building regularization

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The Times of India 04.12.2009

Cap on penalties for building regularization

The state government expects nearly Rs 5,000 crore revenue from Bangalore alone and Rs 5,000 from other parts of the state, once the Akrama-Sakrama (building regularization) scheme is brought into force. The state cabinet gave a nod to the scheme on Thursday.

Though the penalites for regularizing building violations will be reduced by 50%, the cabinet sub-committee has put a cap on this rate. This means the authorities while collecting penalties cannot go above the fixed rate. According to rules, violations in residential buildings should not be more than 50%, while violations in commercial buildings not more than 25%.

The earlier rule considered 10% and 25% of the guidance value for residential building violations (within and more than 25% violations), while it was 25% and 40% of the guidance value for commercial property violations.

Comprehensive guidelines and an official order are expected at the earliest. The rules will be applicable to the entire state. For the cities and towns other than Bangalore, there is no fixed penalty, but regularization fee would be 6% and 8% of the guidance value of the particular city or the town.

"The government will extend 5% concession for those who pay penalty at the earliest. Stringent action would be taken against officers for lapses,'' transport minister Ashoka who ehaded the panel said.

However, buildings constructed on encroached government properties would not come under the scheme. The cut-off date for all unauthorized constructions is December 3, 2009.

With the cabinet giving nod to the amendments, this proposal will be called the Karnataka Town and Country Planning and Certain Other Laws (Amendment) Bill 2009 and would be placed before both Houses of the legislature for the passage.

Genesis
After the proposal by the Kumaraswamy government to regularize unauthorized development and constructions in 2007, the then government returned the Bill for reconsideration. Both the Houses of the legislature passed the Karnataka Town and Country Planning Amendment Bill 2004 on February 3, 2007 at the Belgaum session, for which the government gave its assent on February 6, 2007. Draft notification was issued on May 17, 2007 and the final on August 14 the same year. After the Bill was questioned, the Karnataka High Court passed an interim order to keep the new law in abeyance. The new BJP government felt that the penalty rates were high and constituted a sub-committee to review the policy in July 2008.

THE PENALTIES
* Penalties for residential buildings within BBMP limits will be imposed taking 6% of the guidance value of that particular area if violations are within 25%.

* Penalties will be 8% of the guidance value of that particular area of violations are more than 25%.

* No concession for buildings that are more than 40/60 in measurement.

Violations in commercial buildings within BBMP limits

* Fines will be 20% of the guidance value if violations are within 12.5%.

* Fines will be 35% of the guidance value if violations are more than 12.5%.