The Hindu 17.08.2009

Corporation completes reassessment drive for tax collection

Aloysius Xavier Lopez

CHENNAI: A commercial property on Nungambakkam High Road with an earlier property tax assessment of Rs.9.52 lakh is paying Rs.15 lakh now, after the reassessment drive of the Chennai Corporation.

Similarly, many properties in the city had been found under-assessed and the civic body had issued notices to owners of 55,000 properties that had not declared the correct area.

“The loss of property tax revenue has been decreasing with initiatives such as computerisation of the process of tax collection, reassessment by officials and simplification of the tax system,” said Corporation Commissioner Rajesh Lakhoni.

The Revenue Department of the Corporation includes the area of thousands of buildings under deviation in the city for property tax assessment. However, the failure of residents to declare the exact area of the building has been one of the factors contributing to loss of revenue for the civic body, according to a Corporation official.

The reassessment process of the Corporation has been completed for all commercial and mixed residential properties in the city, said Mr. Lakhoni. The property tax collection this fiscal has been Rs.100 crore, of which arrears in the tax contributed Rs.63 crore. Online tax payment this fiscal has been Rs.77 lakh and the civic body is optimistic of improvement in the online payment in future.

“We are doing rigorous analysis of the computerised data on property tax for finding new ways of augmenting the property tax revenue,” said Mr. Lakhoni. The quick disposal of appeals on account of computerisation and the provision for instant checking by people has made it easier for collection of arrears by the civic body.

The categorisation of property tax payment and focussed intervention have made it easier for officials in reducing the loss of revenue. The Corporation has identified more than 8,000 properties with assessment of more than Rs.1 lakh. Around 300 properties in the city now have assessment of Rs.15 lakh and above. The civic body’s attention will be more on similar properties in future, according to officials.

The Hindu 17.08.2009

Violations of building norms continue unabated city pulse

A. Srivathsan

— Photo: V. GANESAN

VIOLATions galore: The practice of flouting building norms continues to ail the city, affecting organised development and subverting the benefits of city planning.

CHENNAI: If the numbers are any indication, unauthorised constructions have not reduced significantly and blatant violations of building norms continue in the city.

An analysis, made by the Chennai Metropolitan Development authority (CMDA) in March 2009, shows that out of a sample of 97 building applications for completion certificate, 78 were rejected for ‘set-back’ violation, 52 for building more than what was permissible (FSI violation), 22 for parking violation and 25 for unauthorised floor addition.

The Madras High court in its 2006 order made completion certificate mandatory in order to obtain water and electricity connection. While it upheld the 1999 regularisation scheme that condoned unauthorised buildings completed before February 28, 1999, the other regularisation schemes introduced in 2000, 2001 and 2002 were rejected. The CMDA and local bodies were expected to put in place a better enforcing mechanism and work out measures that would curb building violations.

However, in the meanwhile, the State government through an ordinance passed in 2007 and subsequently re-promulgated in 2008 and 2009, extended the cut-off line for condoning unauthorised constructions to July 27 2007. The argument in defence of this ordinance was that the buildings completed after this date would strictly comply with norms and the authorities would ensure that.

In 2008, almost a year after the ordinance was passed, a report submitted by the CMDA showed that of the 3,808 buildings inspected, 2,006 were found violating building norms.

Consequences

The consequences of unauthorised developments are borne by the individuals and the city alike. It impairs organised development and subverts the benefits of city planning and the gullible buyers of illegally developed properties face various hardships.

Just before the apartment was to be handed over, Ms.Lakshmi (name changed) was informed by her apartment promoters that the completion certificate application was rejected since it violated the approved plan. This meant that she would not receive water and electricity connection. Though the developer was responsible and benefited from the violation, it was Ms.Lakshmi who had to face the consequence.

She had to pay additional sum of Rs. 2 lakh to the developer, for which receipts were not issued, to secure water and electricity connection.

R.L.Narayanan, an advocate specialising in property related issues, explains that when notice for demolition is served or penalty is levied on unauthorised construction, the owners will be held responsible and have to pay for it.

The developer or promoter can be implicated and costs can be recovered through civil or other legal proceedings if it is established that the information regarding violation was withheld from the buyer or he or she was kept in ignorance.’

Those who have bought plots in unapproved residential layouts face a different kind of problem. Many are often promised that houses can be constructed in these layouts, but what is less known is that such properties cannot be registered. As a result, no proper sale can be affected.

“They cannot be gifted either,” points put Mr.Narayanan.

Unapproved layouts

The problem of unapproved layouts is equally prevalent in the suburbs. The 2008 survey of Town Pancahyats within the Chennai metropolitan Area identified that between July 2007 and May 2008, 1222 unauthorised developments had come up. Sholinganallur heads the list followed by Kundrathur, Perungudi and Pallikaranai.

K. P. Subramanian, an urban planner and retired professor of Anna University, looks at the persisting building violations with alarm. “When many buildings exceed the permissible FSI as in the case of Usman Road T.Nagar, they bring in more people and vehicles than what the roads can handle. Insufficient provision of car parking adds to the woes. Buildings bridges or making master plans will not solve the traffic problem and the city cannot be developed in an organized manner, till rules are enforced,” he says.

It is a common complaint that large commercial buildings have come in primary residential areas in violation of land use rules. As a result and due to insufficient provision of car parking traffic snarls prevail. Safety of users is another issue that confront the city. By not providing mandated open spaces around the multi-storeyed commercial buildings rescue efforts during fire accidents have been difficult.

Susan Mathew, Vice-chairperson, CMDA, thinks that “the local bodies have the infrastructure to supervise the city better and in future they could take up enforcement and monitor the city closely while the CMDA would focus more on city planning issues.”

Recently, a complaint regarding a building violation was registered online with the Chennai Corporation by a resident near Gill Nagar, off Nelson Manickam Road.

The three- floor residential building was in violation of the rule and was not permissible on a 6-m road.

However, the engineer in-charge, despite the violation on ground, replied that the building is well within the norms and the complaint was closed. Subsequent enquiries and follow-up complaints have not yielded any reply or results.

According to P. Manishankar, President, Federation of Tamil Nadu Flat and Housing Promoters Association, the way forward will be to make the entire building application and approval system transparent and effective. “While the building rules have to be made flexible to reflect the ground condition, the buildings that have grossly violated the rules must be demolished,” he notes.