GHMC To Impose Surcharge on Development Works
The Greater Hyderabad Municipal Corporation (GHMC) to collect surcharge and other taxes in colonies where new development works will be taken up under Total Infrastructure Program (TIP). The works would be taken up in new colonies in surrounding municipal circles with a loan of Rs 600 crore proposed to be taken from various financial institutions and banks.
Four options are being considered for collecting surcharge and other taxes from residents of the new colonies.
- As per the first option, colonies that benefit should pay special betterment charges till repayment of the loan is completed.
- The second option is property tax should be increased by five to 10 per cent per year on all properties like in the case of gram panchayaths as a surcharge.
- While the third option is to collect 10 per cent surcharge on property tax from residents of the colonies where infrastructure is created through the loan amount. The Total Infrastructure Program (TIP) surcharge would be in force for 10 years from the year of completion of works.
- The last option is in lieu of TIP surcharge, the colony associations might be given an option to pay 10 per cent of the project cost.
However, the GHMC has already been collecting betterment charges from people while giving building permissions. Similarly, the town planning wing has started collecting layout regularisation charges (LRS) from people in unauthorised layouts. These new charges would become an additional burden to the people.
Detailed guidelines have been prepared by the corporation for taking and repayment of loan which would be placed before the GHMC standing committee for approval. The municipal administration and urban development (MA&UD) department has permitted the corporation in February last to avail the loan from banks and financial institutions. However, the standing committee members might not agree to the proposal to burden the residents.
GHMC is planning to repay the loan in 10 years on monthly basis by remitting Rs 100 crore every year including interest on the loan to the bankers. Since the development works would be taken up with loan amount, the corporation has proposed to collect special charges from residents of those colonies.
Meanwhile, the GHMC has decided to call for Request for Proposal from various nationalised banks and financial institutions to offer their rate of interest for availing loan of Rs 600 crore very soon. It would also open a no lien escrow account in SBH to secure repayment of the principal and interest by entering into an agreement by tying with the property tax collections.
GHMC, GHMC standing committee, Greater Hyderabad Municipal Corporation, Hyderabad, Hyderabad real estate, Loan from banks, proposal to burden the residents, Real estate in India, Surcharge on development works, Total Infrastructure Program
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