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GHMC Ignoring Builders, And Penalising Owners
Posted by Pradeep Sadanapalli | January 18, 2008 | 1,820 views
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Did you check your flat’s layout plan before you purchased it? Perhaps it’s time you do with the builder-friendly government penalising apartment owners for any deviations in the building layout. Flat owners are predictably up in arms, finds Roli Srivastava.
When retired banker V Dakshina Murthy decided to buy a flat five years ago, he knew he wanted a house close to the market and a temple. He found one in Malkajgiri offering both and admits being taken in by the glossy brochure the builder showed him and made the purchase. It was only late last year when Murthy received the demolition notice sent by the municipal administration that he realised the builder had not complied with the building plan sanctioned by the government. Now, the 70-year-old stands to be penalised for committing a crime of having purchased an illegal structure.
In Sainikpuri, soon after the government announced the compulsory declaration scheme inviting builders and owners to pay up for regularisation of illegal structures, a resident association fished out the layout plan of the newly constructed building to check if there were any such deviations. “The builder had indeed deviated. But we refuse to pay because it is the builder’s mistake,’’ says a resident, adding that residents of the building had trusted the builder and not checked whether he had complied with the building norms or not. The association has now scheduled a meeting with the builder, who hasn’t offered to pay up for defaulting yet.
Consumers in the above cases appear victims but officials and builders would rather call them criminals. After all, consumers are to blame for having purchased property that did not comply with building norms, they say.
The irony of it all seems lost on the powers that be. Banks readily extend loans for properties deviating from norms despite layout papers submitted to them, authorities supply water and electricity to these “illegal buildings’’ and make roads to make them accessible but the only party that now has to cough up a fine is that of the buyer. Consumers point out that they are being penalised for their lack of awareness while those who actually connived in giving shape and form to these illegal structures—builders and civic authorities— are going scotfree.
That most buyers do not check the proposed layout plan as against the sanctioned plan is a reality. “I did not check the layout plan before buying my flat. I just went by the layout given in the brochure. I just didn’t feel the need,’’ says M Ashok, who recently purchased a property in Marredpally. He too, like the Sainikpuri resident association, took out the whole building plan after the penalisation GO was issued.
Builders are predictably pleased with the development as this would only mean regularisation of structures by paying a minimal amount and that too not from their pocket in many cases.
The proposed scheme makes it compulsory to get illegal constructions regularised by paying a penalty amount of Rs 200 per sft for residential buildings and Rs 600 per sft for commercial buildings as against Rs 60 per sft and Rs 300 per sft earlier. In case of deviations in flats, an amount of Rs 10,000 to Rs 80,000 will be levied.
“I condemn this regularisation because it penalises residents, the present owners and not the builders. It is not the owner but the builder who is at fault but they are punishing the person who is possessing it,’’ says V B J Chelikani Rao, president of the United Forum of Residents Association. He says that the buyer, the builder and the government (that has abetted the offence) are collectively responsible for this. “All the three should be legally punished, not just the buyer,’’ Rao says.
While the association is demanding that apartment owners be levied only one-third or half of the penalty, other citizen bodies say there is no reason why owners should pay up at all. February-end marks the deadline for submitting applications for regularisation, an exercise the government had taken up even in the past in 1998.
The disclosure scheme has created a flutter among citizens who allege that the government is hand in glove in these deals. Besides, they note that the scheme in itself is a double-edged sword as far as consumers are concerned. “If builders pay the penalty, he will not pay from his pocket but transfer it to people buying the apartments from him, transferring the additional cost to the buyer which would lead to rise in the prices of flats,’’ says Rao.
Dismissing these concerns, industry persons note that the consumer is at fault for purchasing an apartment with deviations in its layout. “Deviations in the layout take place all the time and people buying know there are deviations. They get a sanction plan from the builder. Why don’t they question him then?’’ says a senior industry observer, adding the layout plan clearly shows the discrepancy. Besides, the sanctioned layout is also displayed at the construction site and it is for the buyer to see and check if it is in compliance with the actual construction.
But, given that most consumers are not as alert when it comes to these technicalities, banks they take loans from could well do the reality check for them. But even they seem to have turned a blind eye to the deviations as they readily extend loans to houses of all shapes and sizes. “The Reserve Bank of India has given a guideline that no housing loan can be given if there are deviations but no bank is complying with it,’’ says an industry insider, adding that the consumer stands to lose since he would continue paying back the loan even after his illegally constructed apartment is demolished.
Officials on their part note that the owner is being penalised for the simple reason that it is difficult to locate the builder. “If the building is faulty, whoever is the owner of the building pays up,’’ says S P Singh, principal secretary, municipal administration and urban planning. He says that understanding the point raised by house owners, the penalisation charge has been kept low, to the tune of Rs 20,000 to Rs 30,000. But he does say that ignorance of law is no excuse for consumers to say no to paying up the fine. “Ignorance of law is no excuse. If you are buying a flat, you would have ensured that it is in compliance with law. Ignorance makes you responsible,’’ Singh says.
Officials say that the apartment owners may get together and catch hold of the builder and make him pay if they so please, but the government wouldn’t get into tracing original builders of properties.
However, citizens say that the whole process smacks of “immoral sanction’’ to builders. “If they cannot chase the builder, they should give up,’’ says C Ramachandraiah, convener of Hyderabad Action Group. He says that authorities are silent on what they have done with illegal structures in the past and what they would do about them in future.
Builders see no reason for concern. They note that the scheme would help improve the city. “Penalising illegal structures will only add to the coffers of the municipal corporation and the urban development authority, which would in turn come in handy for improving the city’s infrastructure,’’ says a member of the builder association, adding that it is also perhaps time to make amends to building rules. “If most builders are not conforming to norms, it shows there is a problem with the existing rules,’’ he says.
But what apartment owners question is them being handpicked for the penalty. Dakshina Murthy says the blame must directly fall on the builder. “We are mere purchasers and not owners of independent houses who have supervised the construction,’’ he reasons.
GHMC to publicise scheme
With most applicants still to submit the Building Penalisation Scheme (BPS) application forms under compulsory disclosure scheme, the Greater Hyderabad Municipal Corporation (GHMC) has decided to hold meetings with colony welfare associations, builders’ associations and non-governmental organisations to make them utilise the scheme and regularise illegal constructions.
In the last fortnight, as many as 20,000 BPS applications were sold by the corporation. However, so far only four house owners have paid the penal amount and submitted their applications. In Greater Visakhapatnam Municipal Corporation limits, which is the biggest corporation after Hyderabad and where the scheme is being implemented too, already 69 people have paid the penal amount and got occupancy certificates. As many as 4,000 applications were sold in Vizag.
Sources said people have several doubts on the penal amount and as to what structures come under BPS. To clarify such queries, the corporation has decided to hold a series of meetings and even involve local people’s representatives in the awareness campaign.
Some officials, however, put the delay on the belief of several people who have been waiting for an auspicious day to submit the form. According to the Hindu calendar, auspicious days began from January 15. Hence, officials reason that people will start queuing up now after arranging for the money that may run from a few thousands to a few lakhs.
“We will begin publicising salient features of the scheme through pamphlets, hoardings, advertisements in media and cinema slides,’’ a senior GHMC official told TOI.
Apart from this, publicity will also be given about licensed technical persons who will help fill up the form and also submit building plans, the official added.
SOURCES:
Times Of India
Topics: Public Concerns, Property Matters, Govt Failures, Construction |
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