Faced with a financial crisis and a slump in real estate markets, the Brihanmumbai Municipal Corporation (BMC) has proposed a 135 per cent hike in scrutiny fee paid by developers for approval of any building construction plan.
The proposal has been placed before the Standing Committee and will be discussed for approval on Wednesday. The proposal also states that henceforth scrutiny fee will be charged for the built-up area and not just the carpet area of a flat. As per the existing rates, for every 10 sq mt the fee is Rs 1,440 for a residential structure. This will now be Rs 3,300.
While the BMC has said the hike will not affect prospective buyers, builders maintain that any increase in cost during the construction process will be passed to the end user.
"The hike is justifiable as the rates were last revised in 1995. It shouldn't make much difference to developers," said Ashok Shintre, chief engineer (development plan department) BMC.
"It will definitely be a boost to the income," Shintre added.
Source: Realty Plus BMC proposes 135% hike in scrutiny fee for buildings
