Nagpur civic body revised the 100% hike in building plan sanction charges

Nagpur Municipal Corporation (NMC) has brought plan sanction charges by 50% after two years. The decision came as a big relief for citizens, as they will also not have to pay the retrospective dues from the last five years. 

Municipal commissioner Radhakrishnan B has executed revised building charges from 1 January. The revised charge will cost a revenue loss of around 75 crores per annum to the civic body dealing with a shortage of money. If the builder considers revised building charges of the flat cost, the citizens who want to construct their own houses, or buy flats will get huge relief. 

The existing municipal commissioner in 2020, Tukaram Mundhe, had asked for guidance from the state government regarding an increase in building plan charges by 100%, with a retrospective effect, for bearing the civic body’s 5% share in the 8,680 crore Metro rail project. 

The government reportedly allowed for the hike on November 3, 2020.  municipal commissioner Radhakrishnan B implemented the steep hike in charges on January 13, 2021. The revised charges were brought into effect from July 1, 2016, and the civic body is supposed to recover 100% extra charges from the individuals and companies who got building plans sanctioned between July 1, 2016, and January 13, 2021.

The move resulted in charges increased from 2% of the ready reckoner value of the land to 4% in the case of a residential structure, and from 4% to 8% for commercial buildings. The MNC sanctioned plans as per the revised charges for two years but did not recover the retrospective amount of five years.

NMC general body passed a resolution to set aside the decision of the civic chief on July 22, 2021, citing that charges were hiked without its consent. Considering the financial loss to the civic body and government  Radhakrishnan sent a resolution to the government and requested to quash the decision.

MLC and BJP city president Pravin Datke pursued the matter and on December 29 they managed to discard the civic chief’s decision. He also said, “NMC is not working to make profits. Hike to some extent, that too in a phased manner, does not increase the burden on the citizens. However, charges were increased by 100% at a single go, causing serious inconvenience to the citizens. The general body and the then office bearers were also not kept in the loop. I thank CM Eknath Shinde and DyCM Devendra Fadnavis for taking the decision in the larger interest of the public”.

“Central and state governments had sanctioned huge funds for various projects in the last six months for the city. There are various types of new revenue sources. A steep 100% rise in charges cannot be termed as a revenue source,” Datke said on the loss to the civic body. 

Now, the charges will be 2% of the ready reckoner value of the land for residential structure and 4% for commercial that prevailed before January 13, 2021,

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