Indian Express 30.12.3009
BMC proposes 135% hike in scrutiny fee for buildings
Faced with a financial crisis and a slump in real estate markets, the Brihanmumbai Municipal Corporation has proposed a 135 per cent hike in scrutiny fee paid by developers for approval of any building construction plan.
The proposal has been placed before the Standing Committee and will be discussed for approval on Wednesday. The proposal also states that henceforth scrutiny fee will be charged for the built-up area and not just the carpet area of a flat. As per the existing rates, for every 10 sq metre the fee is Rs 1,440 for a residential structure. This will now be Rs 3,300.
While the BMC has said the hike will not affect prospective buyers, builders maintain that any increase in cost during the construction process will be passed to the end user.
“The hike is justifiable as the rates were last revised in 1995. It shouldn’t make much difference to developers,” said Ashok Shintre, Chief Engineer, Development Plan. “It will definitely be a boost to the income,” Shintre added.
Earlier the finance department had issued a circular asking every department to find ways of increasing income.
The BMC charges scrutiny fees for passing of building plans following which employees/building inspectors visit the site for verification and cross check the plans vis-à-vis the actual construction. The scrutiny fee is charged from the start of submission of plan till the Intention of Disapproval (IOD) is given to the builder.
Developer Mohan Deshmukh said the increase is not unreasonable as there is a lot of work done by the BMC in terms of scrutiny. “The hike will be marginal for developers,” he said. However, Chairman, Maharashtra Housing Chamber Industry, Pravin Doshi said that buyers will be affected. “If developers have to pay extra during construction then they will pass it to prospective buyers.”
Mayur Shah, Director Marathon Realty, added, “The charges will be for new projects and whatever expenditure developers face will be passed to the users.”
