BENGALURU: The State government has slashed the fee fixed last year for sanctioning building plans within Bengaluru, effecting a deep 60 per cent cut from 0.5 per cent per square metre of the guidance value, to 0.2 per cent, for residential properties. In the case of industries, it’s been slashed from 1 per cent to 0.3 per cent. The development or surcharge fee, too, has been reduced.
The Karnataka Town Planning Authority (Second Amendment) Rules, 2021, was notified in the gazette on Monday (June 21), bringing into effect the revised charges. The move comes as a huge relief to property owners who had delayed construction of their homes due to the hike in plan approval fee. On September 14, 2020, BBMP had issued a circular, hiking the cost to 0.5 per cent for approving home building plans, and effected hikes for other categories too. The move met with stiff opposition from the public, who demanded a rollback.
The earlier order was notified in the gazette on March 10, 2021, asking public to send in their objections within 30 days. Following that, the rates were revised. The development/surcharge fee was earlier fixed at 0.2 per cent of the market value of the plot for residential buildings. It has now been slashed to 10 per cent of the building approval plan fee.
Among those waiting to secure building approval plan from the BBMP was K Ramesh, who wanted to start constructing his house in Jayanagar. “Ever since the fee hike was announced, I was waiting for the reduction to be announced, to take up construction. Not only me, many people objected to the steep hike, and we are relieved that it has been brought down.”
Chairman of Credai, Bengaluru Chapter, Suresh Hari said the move will spur construction activity. “If the plan approval costs are high, people will hesitate to take up work. Many do not start building immediately. The high fee would deter people from getting approval. BBMP should never have increased it during the pandemic,” he said.
“The construction industry is in a state of turmoil ever since Covid struck. Even small developers were affected. Building a house involves spending one’s life savings. Cost of raw material, too, has gone up.
It is crucial that the government offers this support now,” Hari said.