PUNE: The State government has directed the Pune Municipal Corporation (PMC) to scrap the General Body’s (GB) decision to double development charges for new constructions with retrospective effect for vital urban transport projects.
The PMC had passed the proposal in 2017 and was charging the amount.
Now, it is working on a plan to adjust this amount in new building construction proposals and premium charges.
According to a rough calculation by the PMC, the amount would be collectively around Rs 100 crore and if developers make a demand, it has to be refunded.
Yuvraj Deshmukh, Superintending Engineer of Building Permission and Construction Department told Sakal Times, “As per the proposal, we collected retrospective development charges from developers on new constructions such as revision of constructions which came to PMC after 2017. The amount thus collected is Rs 100 crore. Now, We will follow procedure to scrap retrospective charges. Now, we will charge as per new proposal only.”
He said, “We haven’t taken any decision to refund the amount yet. We are exploring options like adjusting the charges for the developers’ new construction proposals.”
On August 21, 2015, the State government amended the MRTP Act for areas under any Planning Authority or New Town Development Authority. As per the amendment, if the State government declares its intention to undertake one or more ‘Vital Urban Transport Projects’, the development charges should be increased by 100 per cent.
Accordingly, the PMC on June 27, 2017, passed a resolution to implement it with retrospective effect and started collecting development charges.
Confederation of Real Estate Developers Association of India (CREDAI) objected to this and wrote to the State Urban Development Department, saying it is not legal as per MRTP Act. They said the amendment, the provision has to be implemented by the concerned planning authority only after the State government announces the ‘Vital Urban Transport Projects’ through an official gazette.
They said the State government notified the implementation of the Pune Metro rail project as a ‘Vital Urban Transport Project’ on May 10, 2018 in its official gazette. Thus, the amendment in the MRTP Act should be executed from the day of publishing of the notification in the official gazette.
The State Urban Development Department heard both the PMC and CREDAI and ruled that the PMC cannot charge retrospectively. Thus, they have written to the PMC to scrap the decision and take a call concerning retrospectively collected charges.
Shantilal Kataria, President of CREDAI-Maharashtra said, “We had challenged the PMC’s decision of retrospective development charges collection. Now, State Urban Development Department has given its decision. The PMC has a problem to refund the amount to developers. So, we discussed with the PMC and they agreed to go case by case and not refund to everyone. We both decided to adjust some amount with new construction proposals of developers in development and premium chargers.”
