Karnataka government allows BBMP to collect ground rent, licence fee, building plan approval fee, scrutiny fee, and security deposit

The notification signed by Governor Thaawarchand Gehlot, the Bill will be tabled before the legislature during the winter session to be held in December in Belagavi, said a senior officer attached to urban development department.

This ordinance has given a huge relief for the civic body as these fees and charges had been deemed — unenforceable — and contrary to the provisions of the KMC Act, 1976, by the High Court of Karnataka. This amendment will save the BBMP from refunding nearly ₹ 2,000 crore.

Further, this bill will also allow the civic body to levy a fee for issuance of licence; security deposit for the building for which the licence is granted; maintenance of public roads or storing of construction materials in public places during construction (ground rent); security fee ensuring that construction is in accordance with plan sanctioned; commencement certificate, and occupancy certificate.

It will also allow the civic body to collect penalty imposed at the time of issuance of occupancy certificate for not obtaining commencement certificate, penalty for regularisation up to 5% of violation or deviation in construction with respect to sanctioned plan or zonal regulation limit, and such other fee specified by government from time to time.