Construction sans permit: CMDA asks MGM to pay Rs 5L

Planning agency gives 15-day ultimatum to reimburse the fine or pay with 24% interest
Chennai Metropolitan Development Authority (CMDA)
Chennai Metropolitan Development Authority (CMDA)Express

CHENNAI: After the Madras High Court penalised Chennai Metropolitan Development Authority (CMDA) to pay a fine of Rs 5 lakh for failing to act against a construction by MGM Healthcare without plan approval, a notice has been sent to the hospital by the planning agency giving it a 15 day ultimatum to reimburse the fine or pay with interest at the rate of 24% per annum.

The high court, while disposing of a petition filed by senior counsel G Rajagopalan on noise pollution caused by construction of a building by MGM Healthcare on St Mary’s Road in Alwarpet, had come down strongly on authorities for their failure to crackdown on unauthorised constructions and rampant corruption in granting plan approvals. CMDA and Chennai Corporation were penalised Rs 5 lakh each, which was to be paid to Adyar Cancer Institute.

According to the legal notice sent to MGM Healthcare, CMDA said that planning permission was granted only on February 23, but MGM commenced construction before that. The planning agency also stated that when the planning permission application, which was received on November 7, 2023, was being processed, piling works and other preparation works were underway since July 2023.

MGM, in a letter dated December 12, 2023, had stated it would not carry out any work at the site till the planning permission and building permission were received. It has also requested Chennai Corporation not to take further coercive action. However, MGM continued with the works.

“The cost (penalty) was imposed only because of your construction activities done without approval and planning permission. Therefore, MGM Healthcare should compensate and reimburse Rs 5 lakh cost imposed on CMDA within 15 days,” the legal notice said.

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