The public in Thiruvananthapuram has expressed outrage over the significant increase in building permit fees. The Local Fund Audit report for FY 2021-22 highlighted cases where the civic authority failed to collect the necessary service cess, particularly for high-rise structures and commercial developments. Thiruvananthapuram Corporation has issued notices to applicants demanding payment of outstanding amounts. The audit revealed undercharging and non-collection of fees, leading to a loss of funds. The Local Fund Audit is responsible for auditing local self-government institutions and aims to increase accountability and financial compliance.
The public in Thiruvananthapuram are outraged over the steep increase in building permit fees. The recently released Local Fund Audit report for FY 2021-22 highlights several cases where the civic authority has failed to uphold the necessary service cess collection, particularly in relation to high-rise structures and commercial developments. In response to the audit report, Thiruvananthapuram Corporation has issued notices to the applicants demanding payment of the outstanding amount.
The audit revealed that the Ulloor zonal office had undercharged by Rs 2.7 lakh in terms of the necessary permit fee and service cess that the municipal corporation should have collected. The company responded by indicating that the relevant party has been provided with notification of the need for further payment. The Kadakampally zonal office reported another incident where the corporation failed to collect the fee for an elevated construction permit. The audit of the local fund has revealed that the civic body rarely imposes a service charge when renewing a permit after three years.
According to the regulations set by the municipality, corporations are required to levy a fee of Rs 1,000 for each unit of land that undergoes partitioning, as well as any associated land enhancements and modifications. Furthermore, the layout approval charges, and application fees are not inclusive of this extra charge. In response to a tragedy that occurred during a residential construction project involving significant land excavation in 2017, the city corporation enforced a requirement for development permits to be obtained for similar projects that involve substantial land levelling and excavation.
According to Section 11 A of the Kerala Municipality Building Rules (KMBR), if a builder plans to excavate more than 1.5 metres deep at a construction site, they must apply for a permit for development and building approval. Although there is a norm that land development for construction purposes requires a development permit, the engineering department has rarely adhered to this regulation due to a broad clause that specifies that obtaining a development permit is not necessary.
The local fund audit has identified examples where the officials of the corporation mistakenly estimated the floor space and neglected to charge the service cess, leading to a loss of approximately Rs 2 lakh.
The Local Fund Audit, which is within the purview of the Finance Department, Government of Kerala, is the authorized auditing body in the state of Kerala. The responsibility of examining the financial records of Local Self Government Institutions (LSGIs) and local funds listed in the Local Fund Audit Act is assigned to this department. The goal of this organization is to increase the responsibility of executives towards local governments and state legislatures by conducting audits in local municipalities and providing accounting services in compliance with the Kerala Local Fund Audit Act of 1994.
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