Wednesday, August 13, 2014

Developers bend rules to escape paying development charges for small townships



C Shivakumar

Chennai:

The state government is suffering losses to the exchequer as
developers are using shortcuts to escape from paying infrastructure
and amenities charges.

According to information available with Express many developers
prepare a layout and get it approved from Chennai Metropolitan
Development Authority.

After getting it approved. The developer gifts the roads as well as
parks to the local body and then doesn’t sell the plots which have
been approved in the layout. He keeps the plots and then later
develops it into a small township or a gated community.

But then this is all done to escape from paying the development
charges. A CMDA source confirmed that now developers have started
using this technique.

“When you gift a park or road to the local body then the layout is
open to public. Interestingly, the developer builds a compound wall
and a gate restricting access to the public. This is against the
spirit of layout. This requires the developer to pay the development
charges,” sources said.

When Express contacted a builder, he said on condition of anonymity
that once the layout is converted into a gated community then the
developer has to pay infrastructure and amenities charges or
development charges. he said if the builder doesn't pay, then it is
termed as violation.

Interestingly, a local body in Ayamabakkam has alleged of such a
violation by a developer. The official states that the developer
prepared a layout for 177 plots but then instead of selling the plots
he amalgated it and built 672 houses. It resulted in setback
violations as the space between the two buildings should be five feet.

Besides he has also encroached upon the land which he has gifted to
the local body, the local body official alleged.

A CMDA official said this is now a new trend among the developers
after the development charges were increased. However, there are no
figures available on how many developers have flouted the rules. Top
CMDA officials could not be contacted.

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