The State Housing and Urban Development Department has relaxed the norms for collection of development charges citing the problems witnessed by the real estate sector during COVID-19 pandemic.
Chennai: According to a government order issued on June 25, the builders in the city could pay the development charges without paying interest for the period between March 25 to September 30. The government order will apply for the projects falling under the Chennai Metropolitan Development Authority (CMDA) and Director of Town and Country Planning (DTCP) areas.
“For planning permission applications for which development charges advice issued prior to March 25, if the payment is not made, the interest may not be levied,” the GO stated.
The planning authorities are collecting development charges for land and building, regularisation charges, OSR charges, infrastructure and amenity charges, and shelter fees and interest is collected for the belated payment. Usually, the promoters ought to pay the development charges within the 30 days after the demand for payment sent by the authorities. Post the 30-day-period, 12 per cent interest would be collected on delayed development charges.
“CMDA has received a representation from the confederation of real estate developers’ association citing the unprecedented lockdown hampering the real estate and construction industry,” the order said.
“For planning permission applications for which development charges advice issued prior to March 25, if the payment is not made, the interest may not be levied,” the GO stated.
The planning authorities are collecting development charges for land and building, regularisation charges, OSR charges, infrastructure and amenity charges, and shelter fees and interest is collected for the belated payment. Usually, the promoters ought to pay the development charges within the 30 days after the demand for payment sent by the authorities. Post the 30-day-period, 12 per cent interest would be collected on delayed development charges.
“CMDA has received a representation from the confederation of real estate developers’ association citing the unprecedented lockdown hampering the real estate and construction industry,” the order said.