BMC yet to recover Rs. 102cr from builders | mumbai | Hindustan Times
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BMC yet to recover Rs. 102cr from builders

mumbai Updated: Jul 13, 2012 00:55 IST
HT Correspondent
HT Correspondent
Hindustan Times
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The BMC is yet to recover Rs. 102 crore towards development charges from builders, chief minister Prithviraj Chavan admitted on Thursday.

The chief minister was responding to a calling attention motion moved by NCP legislator Jitendra Awhad, who alleged that the civic body had not recovered charges to the tune of Rs, 655 crore from developers.

The BMC recovers this charge from developers in return for providing basic infrastructure and then issues an occupation certificate (OC). All developers need to get their building plans approved by BMC, which also issues a certificate to commence construction. Handing over flats to consumers without an OC is an offence.

In case of defaulters, the BMC charges an annual 18% interest on unpaid development fees. It issues a stop-work notice and also blacklists the developer. But the harshest punishment is handed to residents who are charged extra water and property taxes.

Chavan said the civic body was yet to recover the development charges from developers because their projects were delayed for several reasons. He also assured a probe into the alleged nexus between builders and officials from the BMC’s estate department, who clear building projects in the city.