Kumari Palany & Co

Building houses become more expensive with increased utility charges

Posted on: 22/Feb/2018 10:30:50 AM
State departments including the Chennai Corporation and Chennai Metro Water revised their utility charges in tune to the Chennai Metropolitan Development Authority rules, which facilitated the revision in 2016. The system of putting concrete roads in interior roads in all cities has now increased the road cut charges by several folds.

Sources within the administration say, 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. 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 member of CREDAI said, 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. 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. 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. 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.