CMDA’s Shelter Fee hits legal roadblock 

CHENNAI: Tamil Nadu Housing secretary convened a meeting last Tuesday as the newly-introduced Shelter Fee to fund public housing projects for the urban poor is facing legal issues and causing confusion among builders.It is learnt that developers have been questioning the levy of Shelter Fee and some have approached the Madras High Court to seek a legal remedy. An interim stay has been awarded after Akshaya challenged the demand for Shelter Fee while it sought building plan approval for development of commercial office building in its land at  Okkiyam-Thoraipakkam on Old Mahabalipuram Road.
T Chitty Babu, Chairman and chief executive officer of Akshaya Pvt Limited confirmed that they have got an interim stay.

Another developer, Dugar Homes, had approached the Housing Secretary for a remedy after Chennai Metropolitan Development Authority (CMDA) levied Shelter Fee on an existing project.
The developer initially got permission to build 10 residential floors and four commercial in 29,472 sq metres in the first stage before adding  11th to 14th floors (residential) and an additional commercial floor in the second stage.

However, when the developer wanted to revise the plan reducing the commercial area of fifth floor which was approved on July 26, he was asked to pay Shelter Fee.
It is learnt that since the developer has already provided requisite 10 per cent area earmarked for economically  weaker sections, he has urged the Housing Secretary to instruct CMDA not to levy the fee.
The fee is levied to raise funds for Shelter Fund, a scheme to provide housing for urban poor in Chennai. It is collected for multi-storeyed and special buildings.

The sum is fixed based on the Infrastructure and Amenities charges, an already contentious demand that many property developers are not happy with.After the Government Order was issued on July 21, CMDA asked its planners to levy a Shelter Fee of 75 per cent of the prevailing infrastructure and amenities rates from all the proposed developments having a built up area of 3,000 sq metres and above.