Delhi’s Municipal Corporation Introduces Compensatory Regulatory Charge for Building Plan Approval

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    The Municipal Corporation of Delhi (MCD) has announced a new policy to impose a compensatory regulatory charge for building plan approvals in Delhi. This decision, formerly limited to areas under the erstwhile north corporation, has been extended to cover the entire MCD jurisdiction, in response to the unification of the three civic bodies and demands for uniformity.

    Impact on Construction Costs

    The introduction of this compensatory regulatory charge will significantly affect the cost of constructing houses in Delhi, especially in the south and east Delhi regions where it was previously not in effect. This charge will increase the overall construction expenses, necessitating property owners and developers to gain a comprehensive understanding of the nuances of this new fee structure.

    Unified Building By-Laws

    As per the unified building by-laws, MCD will levy these charges when granting approval for building plans. The collected funds will be allocated to the maintenance and development of civic infrastructure within MCD areas, including regularized colonies and village abadis. The charges will be calculated based on the proposed built-up area of a property, contingent on the prevailing circle rate in the respective colony.

    Fee Structure Details

    To provide a more detailed breakdown, let’s examine the fee structure for various categories of residential properties:

    1. Category A (Plot size up to 250 square meters)
      • Charge: Rs 387 per square meter
    2. Category B (Plot size similar to category A)
      • Charge: Rs 122.70 per square meter
    3. Category C
      • Charge: Rs 79.90 per square meter
    4. Category D
      • Charge: Rs 63.80 per square meter
    5. Category E
      • Charge: Rs 35 per square meter

    For residential plots exceeding 250 square meters:

    1. Category A
      • Charge: Rs 774 per square meter
    2. Category B
      • Charge: Rs 245.50 per square meter
    3. Category C
      • Charge: Rs 159.80 per square meter
    4. Category D
      • Charge: Rs 127 per square meter
    5. Category E
      • Charge: Rs 70 per square meter

    Transparent Calculation

    In response to feedback and suggestions, a decision was reached to calculate charges based on the total built-up area of the property, rather than the size of the entire plot. This modification ensures a fair and transparent calculation of charges for all stakeholders.

    Approval and Implementation

    The proposal for the uniform charge was initially introduced on September 5 but was adjourned. Following thorough discussions and considerations, it was reintroduced in the House and subsequently endorsed. These charges will be applicable when seeking approval for building plans from MCD, whether it involves a new structure or an additional one.

    Meeting Infrastructure Demands

    The decision to introduce this compensatory regulatory charge is a response to the evolving urban landscape of Delhi. With the number of permissible dwelling units substantially increased, areas have become more densely populated, requiring additional funds to support and enhance existing infrastructure.

    So, this new fee structure introduced by the Municipal Corporation of Delhi represents a significant development in the realm of construction and property development. Property owners, developers, and industry professionals should be aware of these changes and adapt their strategies accordingly to navigate the evolving landscape of construction in Delhi.

    Also Read: Residential Construction Costs May Surge in South and East Delhi

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