Large-Scale Scam in Release of Mortgaged Flats in Nellore
The high court is expected to hear the matter soon. Activists have sought strict action against errant officials and builders, calling the scam a “blatant abuse of power and a threat to public safety.”
Nellore: A major scam has surfaced in the Nellore Municipal Corporation, where officials including three previous Commissioners D. Haritha, D. Chennudu and Vikas Marmat suspected to have released mortgage deeds of apartment complexes to builders without ensuring the issuance of mandatory Occupancy Certificates (OCs).
This, it is pointed out, was done in gross violation of municipal rules.
The irregularities came to light through a Public Interest Litigation (PIL) filed by social worker and senior TD leader Anam Venkataramana Reddy. Ramana Reddy shared the details of the scam to the media here on Tuesday.
According to investigation reports from ACPs and the Town Planning office, as many as 71 buildings constructed with valid permits deviated from their approved plans between 2022-24 period.
Despite these violations, corporation officials fraudulently released mortgage deeds without conducting inspections or certifying the buildings as fit for occupancy.
Shockingly, residents have already moved into these apartments, though none of them obtained an Occupancy Certificate.
Of the 71 buildings, deviations in 68 projects were found to be non-compoundable under Section 452-A of the APMC Act, 1955. The PIL alleges that this malpractice has caused massive financial loss to the extent of Rs 18 crore to the corporation, since penalties and revenues mandated under the AP Building Rules, 2017 (Rule 3(32)(J)) were never collected.
The petitioner has listed 72 buildings where mortgage deeds were released in violation of norms. He accused municipal officials of colluding with builders and promoters. He alleged that the authorities failed to implement GO Ms 119 (2017), which required revenue collection from errant builders, thereby not only enabling corruption but also depriving the civic body of vital funds.
A plan of action prepared by the authorities has now recommended issuing notices to flat owners, builders and landowners, with hearings under Sections 452 and 455 of the APMC Act. The plan proposed levying penalties on property tax, water supply, and sewerage connections; filing charge sheets against landowners and builders under Section 463(4); cancelling fraudulent relinquishment deeds, as well as builder and licensed technical personnel (LTP) licences; conducting a probe against municipal officials involved in the illegal release of mortgages.
The High Court is expected to hear the matter soon. Activists have sought strict action against errant officials and builders, calling the scam a “blatant abuse of power and a threat to public safety.”
