Plan to regularise illegal plots gets poor response

Just 6,800 apply to get government approval for land, as high fee and lack of punishment for missing deadline keep owners away.
Image used for representational purpose.
Image used for representational purpose.

CHENNAI: A mere 6,800 applications for regularisation of housing plots and layouts have been received by the housing department, three months after the state government announced that all illegal plots and layouts should be regularised by paying a fee. The state government offered the lifeline for the plots after a prolonged legal battle in which the Madras High Court banned sales of all illegal housing plots in the state for over six months.

The state government had identified 24,000 unauthorised layouts, containing 10 to 13 lakh plots, across the state. But in sharp contrast to expectations, only 6,800 applications have arrived since May 12, the date the housing department notified the regularisation scheme. The deadline is November 3.

A section of the builders and landowners attribute this to the high fee they have to pay under the scheme. They also say the state government has not announced any action on those who fail to apply for regularisation. Given that the state government had mostly taken a compassionate stand towards the illegal plot and layout owners, not many feel compelled to apply for regularisation.

“It is the same (cost) as buying another plot,” said the owner of an unapproved plot he bought over a decade ago. Confederation of Real Estate Developers Association of India (CREDAI) president Suresh Krishn too said that the scheme may not be successful due to the fee levied.

But a calculation of the cost for an average plot of 2,400 sq ft of land shows the fee imposed by the government is not prohibitive. For a 2,400 sq ft plot (5.5 cents), the total amount the land owner has to pay comes to Rs 1.56 lakh, if the land is in corporation limit. In case of special and selection grade municipal area, it is Rs 91,940. For Grade I and Grade II municipal areas, the figure is Rs 69,740. Besides this, the plot owner or developer has to pay Open Space Reservation charges.

Another reason cited for the poor response is the lack of clarity over what action the government would take if the plot owners fail to apply for regularisation within the deadline. S Ram Prabhu, secretary of Builders Association of India, says the main concern is the infrastructure and amenities charges. “People are willing to pay the Open Space Reservation charges, but Infrastructure and Amenities charges are quite high,” he said. “To make the regularisation scheme a success, the government should offer some concessions.”

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com