The Municipal Corporation of Delhi (MCD) is contemplating the introduction of "compensatory regulatory charges" in south and east Delhi, a move that may significantly affect residential construction costs in these areas. Previously, this fee was limited to North Delhi. The charges will be based on the built-up area of new residential structures or renovations and will be applied during the building plan approval process. The proposal is set to be discussed in an upcoming house meeting. MCD officials argue that these charges are necessary to support infrastructure development in MCD-governed regions. However, there are suggestions to revise the fee calculation method to correlate with the built-up area, potentially impacting construction costs.
In a move that could significantly impact the cost of residential construction in south and east Delhi, the Municipal Corporation of Delhi (MCD) is considering the introduction of "compensatory regulatory charges." Previously, this fee was exclusive to North Delhi, imposed by the former north corporation.
The fee's determination will be based on the built-up area of either new residential structures or renovations to existing ones. According to senior MCD officials, these charges will be applied during the building plan's approval process. Historically, only the north Delhi region was subjected to these compensatory charges when seeking approval for new constructions. This encompasses both entirely new edifices and extensions to current structures.
The decision to extend this fee to south and east Delhi will be discussed in a house meeting scheduled for later this week. An MCD representative highlighted the potential implications of this move, stating that if the proposal gains the councillors' endorsement, constructing new residences, particularly in south and east Delhi where this fee is yet to be implemented, could become considerably more expensive. The official further emphasized that the unified building regulations necessitate the MCD to impose such charges. The revenue generated from this fee will be allocated towards the upkeep and enhancement of infrastructure in MCD-governed regions, including regularized colonies.
The idea to expand the scope of this charge to cover all of Delhi was conceived by MCD officials on September 5. Commissioner Gyanesh Bharti drew parallels with other major cities like Mumbai, Kolkata, Pune, and Nagpur, where similar fees are levied by local authorities to fund the development and maintenance of amenities.
Furthermore, the MCD has been advised by various entities to reconsider the fee's calculation method. Presently, for expansive plots with minimal built-up space, the fee is determined by the plot's size. Property owners have called for a more logical approach, suggesting the fee should correlate with the built-up area. An official confirmed that the fee will be computed based on the total constructed area.
In conclusion, the introduction of compensatory regulatory charges in south and east Delhi underscores the MCD's commitment to enhancing city infrastructure. However, it remains to be seen how this move will be received by residents and builders, especially considering the potential rise in construction costs.
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