Govt to exempt small plot owners

Times Of India Hyderabad 13.04.2011

Succumbing to pressure from different quarters,including property
owners,residential welfare associations and public representatives,the
state government is contemplating to exempt small plot owners from the
mortgage rule for constructing their houses.

Under the mortgage rule,an owner or builder,who seeks building
permission,has to either mortgage 10 per cent of the built up area or
one floor to the respective municipal authority.
The mortgaged portion would be released if the owner constructs the
building without deviating from the sanctioned plan and obtains
occupancy certificate from the municipal authorities concerned.The
civic body has powers to seize the mortgaged property if the owner
deviates from the plan and constructs unauthorised structures.

As of now,the mortgage rule applies for structures that come up on 100
square (sq) metres (120 sq yards) plot area and above in the entire
state.
With representations from people and elected representatives,the chief
ministers office (CMO) reportedly directed the municipal
administration and urban development (MA-&UD ) department to exempt
independent house owners from the rule.

Interestingly,the number of building applications has come down in
corporations,municipalities,including the Greater Hyderabad Municipal
Corporation (GHMC),after the mortgage rule was extended to even
smaller plots.
Until last October,the mortgage rule was mandatory for buildings which
came up on over 200 square metre plot area and above G+2 floors
buildings as per the New Building Rules (GO 86).
The proposal is to implement the mortgage rule for buildings in over
200 sq metres in Greater Hyderabad and 300 sq metre plot area in other
corporations and municipalities, a senior MA&UD department official
told TOI.

Sources said amendments to the mortgage rules are likely to be
incorporated in the new draft meant for compilation of various GOs on
building rules that were issued by the state government from time to
time.The Director of Country and Town Planning (DTCP) has been
entrusted the work of compilation of four GOs (Nos 86,678,302 and 569)
issued since March 2006 for implementing new building rules.The new
draft has also proposed some changes in parking requirements and set
backs for buildings.

As the mortgage rule had become a hurdle for middle and lower-middle
class families,the GHMC standing committee also passed a resolution in
October 2010 to exempt smaller plots from the rule and the GHMC
commissioner sent a letter to the MA&UD department.

The smaller plot owners have to make rounds to the corporation to get
the mortgaged portion released apart from building permissions.Most of
the unauthorised structures are generally made by builders who
construct apartments in G+2 floors and above, Nampally Ravi,general
secretary of West Deendayal Nagar Residents Welfare Association said.