Less than a year after it introduced rules regularising unauthorised structures, the State government is already making changes to cut ‘compounding’ charges, giving in to pressure from lobby groups.
The Maharashtra Urban Development Department (UDD) last week issued amendments to sections of the Maharashtra Town Planning (Compounded Structures) Rules, 2017, which were introduced in October last year to regularise unauthorised structures that came up on or before December 31, 2015 on payment of a certain fee and fulfilment of defined norms.
But stakeholders and planning authorities have since complained to the government about the “extreme” nature of the compounding charges being levied, senior officials said.
“They communicated various issues raised during the implementation of these rules and requested the government to reduce the compounding charges to be paid in such cases,” said RM Pawar, Under Secretary, UDD, Maharashtra.
The Campa Cola case
The need for the rules was felt following the controversy surrounding the Campa Cola Compound case, which made national headlines after a court judgement deemed construction beyond five floors illegal while directing their demolition, leading to outrage.
The rules introduced subsequently did not benefit the Campa Cola structures but laid down a mechanism to monitor violations related to the Floor Space Index (FSI), Transfer of Development Rights, and Fungible FSI. The compounding charges in various categories were estimated to be double the development charges levied by the local authorities.
Though the extent of the cut in various categories has not been spelt out yet, senior officials said changes would apply to the charges relating to violation of permissible FSI, inadequate setbacks, width of approach road and plinth area (ground coverage). In some categories, the power to ascertain compounding charges has been assigned to the planning authority.
“The compounding charges must then be calculated by the authorities based on the need to provide public amenities, utilities and services in the respective areas,” said an official.
Activists said the home buyer will bear the brunt of the reduction in charges. “Victims of the deceitful developer lobby had hoped high charges would deter any deviations in projects. But with this cut in charges, the government has shown it is exposed to pressure from lobby groups that are promoting unauthorised construction in Mumbai,” said civic activist Anil Galgali.
Illegal constructions are already growing in Mumbai and the Mumbai Metropolitan Region, where thousands of cases go unreported, he said.