Wednesday, July 29, 2009

Land-use fee goes through the ceiling

Land-use fee goes through the ceiling
Govt Fixes Fee As Percentage Of Prevailing Guidance Value
S Kushala & Jaideep Shenoy | TNN


Bangalore: Take a deep breath, here comes a shocker. Property buyers and land and layout developers will have to pay a very steep fee for change of land use and layout approvals. The government had on June 30 published the draft rules to amend the Karnataka Planning Authorities Rules, which have fixed the fee based on a percentage of guidance value.
What was Rs 75 per sqm for change of land use in Bangalore from residential to commercial is now 18% of the guidance value of total land area. Similarly, the Rs 40/sqm being paid for change of land use to industrial has been revised to 17% of the guidance value of total land.
Strangely, the draft notification has not been publicized by the authorities, who have called for objections/suggestions within 30 days.
Earlier, the change of land use fee was based on the population and varied from gram panchayats, CMCs, TMC and corporations. Now, with the new amendments, the rates are based on a percentage of guidance value.
The amendment to Section 18 (i) reads: “At the rates equal to such percentage of the value of the building determined on the basis of guidance value notified under the Karnataka Stamp Act, in the case of permission for change in use of land or approval of layout.’’
According to town planners, the revised fee will have an adverse impact on the already-shaky realty sector. “Layout sanction fee may go up manifold, thanks to the percentage rate. This is going to have a negative impact on the industry,’’ they explained.
Karnataka Township Developers’ Association general secretary C J Roy told TOI this move will hit the realty sector which is showing signs of recovering from economic slowdown. “The impact will be harsh and the developers will be forced to pass on the additional burden to the customers,’’ he said.
THE
REVISED
RATES
For change of land use and layout approvals: Residential: 15% of the guidance value of total land
Commercial: 18%
Industrial: 17%
Others: 8%
Nod for
Akrama Sakrama
The much-awaited second amendment Bill to regularize unauthorized sites and layouts (Akrama-Sakrama) was passed in the assembly on Tuesday. This amendment will enable regularization of all illegal sites and layouts developed prior to December 31, 2008 as a onetime comprehensive scheme.

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