Get ready to pay more if you are planning to build your new house as the Lucknow Development Authority (LDA) on Tuesday gave its nod to hike development charges across the board.
Ranging between 10 to 15%, the increase is bound to burn a hole in your pocket because of the cascading effect the decision would have on several other charges that are levied by the development agency at the time of sanctioning a building plan.
Under the revised rates, while external development charges have been raised from Rs 1,350 to Rs 1,575 per square metre, the new internal development fee would be Rs 1,270 per square metre against the existing Rs 1,090.
Besides this, the development agency also levies other charges in the form of permit fee, supervision fee, inspection fee, park fee, impact fee, stacking and strengthening charges, labour cess etc.
The hike would also affect flat/plot owners in hi-tech townships as city and rural development charges, too, have been revised from Rs 300 to Rs 317 per square metre.
Another pinch on the pocket comes in the form of 1% labour cess that would now be charged by the development agency on work exceeding Rs 10 lakh.
Development charges had not been revised for the past couple of years following a restraint order by the Allahabad high court. The court had held these development charges untenable in the eye of law as the state gover nment had not drafted the required rules as envisioned under the Urban Planning and Development Act. Consequently, the state government was directed to frame appropriate rules and bylaws before imposing these charges.
According to housing department officials, the UP government has framed appropriate bylaws and issued the necessary order spelling out the criteria on the basis of which these development charges and other levies would now be realised by various development and housing agencies.
Most development authorities in UP were wrapped on their knuckles by the comptroller and auditor general in its annual audit for not realising development charges worth crores from developers/builders. The Kanpur Development Authority had topped the list by sanctioning six building maps in violation of building bylaws and short recovery of floor area ratio charges, resulting in a loss of Rs 7.75 crore. It also resorted to short levying of development charges that led to a loss of another Rs 5.01 crore.