delhi construction: Building houses in Delhi to become costlier, here’s why

Building houses in South and East Delhi may become costlier as the Municipal Corporation of Delhi (MCD) is considering the expansion of “compensatory regulatory charges” to south and east Delhi. Previously, this fee was exclusive to north Delhi under the erstwhile north corporation.

As per a TOI report, the proposed charges will be determined based on the built-up area of new residential constructions or extensions to existing residential structures. According to senior MCD officials, these charges will be applicable during the approval process for building plans. Prior to the MCD unification, compensatory regulatory charges were only applicable to new constructions and additional structures in north Delhi areas.

The proposal to introduce these fees in south and east Delhi will be presented during a recent house meeting. If endorsed by councillors, this move could significantly raise the cost of constructing new houses, particularly in areas of south and east Delhi where such charges have not been in effect. The unified building by-laws mandate the MCD to impose these fees for the maintenance and development of infrastructure within its jurisdiction, including regularized colonies.

The revenue generated from these charges will be allocated towards the enhancement and upkeep of critical infrastructure in areas under MCD authority.

The proposal for citywide implementation of compensatory regulatory charges was first introduced on September 5th. Commissioner Gyanesh Bharti noted that many other Indian cities, including Mumbai, Kolkata, Pune, and Nagpur, have similar charges in place to fund infrastructure development and maintenance.

Furthermore, the MCD has received recommendations from various institutions to reconsider the methodology for calculating these charges. For instance, in cases where a plot is large but the built-up area is relatively small, the fee is currently determined based on the plot size. In response to these suggestions, MCD officials have indicated that the charge will now be computed based on the total built-up area.

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