The Municipal Corporation of Delhi (MCD) is introducing a compensatory regulatory charge to support civic infrastructure development across the city. This charge, previously applicable only in areas under the north corporation, will now apply citywide, including south and east Delhi. The fee is based on the prevailing circle rate in each colony and will be charged when seeking building plan approvals. The funds collected will contribute to the maintenance and development of civic infrastructure in MCD areas, including regularized colonies and village abadis. The decision comes in response to changing population densities and increased demand for infrastructure development.
The Municipal Corporation of Delhi (MCD) has decided to introduce a compensatory regulatory charge, an additional fee that property owners must pay to have their building plans sanctioned. This new charge applies to all types of properties, including residential ones, and is intended to support the enhancement of civic infrastructure in the city.
This charge had previously been imposed in areas under the former north corporation, but since the unification of the three civic bodies, there has been a consistent demand to implement it across the entire MCD jurisdiction. The decision to extend this charge will have significant implications, particularly for residents in south and east Delhi, where it wasn't previously applicable, as it will raise the overall cost of constructing houses in these areas.
The move to levy this fee is in alignment with the unified building by-laws, which authorize the MCD to impose charges when granting building plan approvals. The funds collected from these charges will be allocated to the maintenance and development of civic infrastructure in MCD areas, including regularized colonies and village abadis.
The amount of charge applied to a property will be determined based on the prevailing circle rate in the respective colony.
Civic officials initially proposed this uniform charge on September 5, but the House was adjourned. During this period, various institutions, especially those occupying large plots where buildings only occupy a portion, requested a review of the charges levied on the entire plot. In response to these suggestions, it was decided that the charges would be calculated based on the total built-up area rather than the size of the entire plot. This proposal was reintroduced to the House on Tuesday and was subsequently approved. The charges will be applicable when seeking approval from the MCD for a new building or any additional structures.
The need for these charges has arisen due to changes in the Delhi Master Plan 2021, which have substantially increased the number of permissible dwelling units. Property owners are now constructing multiple units by redeveloping single-unit buildings, resulting in higher population density in various areas. As a consequence, there is a heightened demand for funds to bolster the existing infrastructure, which is the rationale behind implementing these compensatory regulatory charges.
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