10 hours ago
Dvpt fee may see up to 20-fold rise
Ahmedabad: Properties are set to get costlier with the Ahmedabad Urban Development Authority (Auda) approving a proposal to hike development charges for new projects in the city.
The proposal got the nod at its board meeting on Tuesday, paving the way for a 10-20-fold increase in the charges, which will directly impact the cost of residential, commercial, and other properties. Besides areas under Auda's jurisdiction, the new rates — on getting the state govt's green signal — will also apply in Ahmedabad Municipal Corporation (AMC) limits.
Development charges are levied based on the area of land and construction when a building plan is approved in Auda or AMC areas.
This hike will push up the cost for builders, and as a result spill on to buyers of properties, including homes.
The changes in rates come more than 40 years after the Gujarat Town Planning and Urban Development Act of 1976 came into effect on Feb 1, 1978. Section 99 of this law grants urban development authorities the power to levy development charges on land and constructions within their jurisdiction, with Section 100 listing a provision for determining the maximum charge.
by Taboola
by Taboola
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The 1976 law allowed charging Rs 50,000 per hectare or Rs 5 per sq m for land, and Rs 15 per sq m for construction. However, a govt notification on July 28, 2017, amended the law, allowing a maximum charge of Rs. 100 per square metre and setting the limit to Rs 10 lakh per hectare. On March 8, the next year, Auda proposed doubling the development charges, an idea which the state govt did not approve for five years. Auda however pulled back this proposal after Navsari Urban Development Authority in 2023 implemented revised charges.
Auda then came up with updated rates at its board meeting in June 2023. These were finally approved at Tuesday's meeting and will now be sent to the state govt for a final nod.
An Auda official speaking anonymously said, "Auda submitted a proposal to increase development charges in 2018, which remained pending with the state govt. It withdrew this proposal in 2023, the year the govt also increased jantri rates, which are likely to come into effect soon. Thus, we decided to revise the 2023 development charges and again submit a new proposal. The new charges determined at the board meeting on June 17 will now be sent to the state govt for approval.
This is the first increase in development charges in over 40 years, previously approved by the state govt."
