CHENNAI: In a major blow to the middle-class and those constructing houses, the state departments, including Chennai corporation and Chennai metro water have silently revised their utility charges in tune to the Chennai Metropolitan Development Authority rules, which facilitated the revision in 2016.
Further, the system of putting concrete roads in interior roads in all cities has now increased the road cut charges by several folds. The CMDA should be blamed for the steep rise in charges, following the CMDA other departments have increased the charges for the public to avail water connections, building plan approval and road cuts, admitted sources with the local administration ministry. “CMDA in 2016 revised its charges under eight categories and almost every building in TN will have to shell out several lakhs of rupees as security deposit and charges.
“A person constructing a building in the City has to pay charges under 12 categories to various government departments, of which eight are related to CMDA and local bodies. Four are related to sewer, water connection and electricity”, said a member of CREDAI. In case of buildings beyond two floors, charges and fees to fire safety department is also essential and there is a no objection certificate to be availed from city traffic police, the realtor said.
Currently, for a commercial building in tier one city, the charges are collected under heads. Development charge for land, development charge for building, scrutiny fee, regularisation for land, security deposit for building, security deposit for display board, security deposit for building, septic tank deposit charge, infrastructure development charge for sewer network area.
In case if the land is big then there is Open Space Reserve charge collected. All these factors have increased the base price of flats choking the industry, said D. Jayakumar, a realtor based in Tambaram. “For a regular single storey building, you need at least Rs 6 lakh to be paid as charges for various departments. Road cut charges in Chennai were earlier below Rs 10,000 and now with concrete roads being laid the road cut charges has increased from Rs 20,000 to one lakh depending on various parameters,” said R Vijay, who is into building construction works in South Chennai.
