Violations by Builders: City apartment dwellers face double Property Tax
News, Top Stories

Violations by Builders: City apartment dwellers face double Property Tax

June 27, 2024

Senior citizens, retired persons bear the brunt after investing life’s savings: MLA T.S. Srivatsa

Mysore/Mysuru: In the bustling city of Mysuru, a growing number of apartment residents are grappling with the burden of paying double Property Tax, calling for urgent Government intervention.

Krishnaraja BJP MLA T.S. Srivatsa has brought this pressing issue to attention, pointing out that numerous apartment buildings, particularly in his Constituency, have been constructed in violation of permitted Floor Area Ratio (FAR). These violations have led to higher Property Tax, sparking outrage and concern.

“Most of the occupants of flats in apartments end up paying double the stipulated tax to the Mysuru City Corporation (MCC) as the builders violate the norms, attracting fines for the diversions from the approved plan,” he told Star of Mysore this morning.

Srivatsa explained that the root of the problem lies with some builders, who either fail to follow the approved construction plans or add unauthorised extra floors. This non-compliance prevents buildings from receiving the crucial Completion Report (CR).

Without a CR, Property Tax under the Self-Assessment Scheme (SAS) gets doubled, creating a heavy financial strain on the residents.

Violation of city planning rules

“I have raised this issue in the Assembly as well. When approving a building plan, the Mysuru Urban Development Authority (MUDA) or the District Planning Authority specifies the floor plan and the FAR. However, builders frequently violate these regulations by constructing additional floors beyond what is permitted under the City Planning Rules and the Town and Country Planning Act,” explained the MLA.

“Situations arise where, for instance, if the FAR allows for seven floors, the builder constructs 10 floors. As a result, these buildings do not receive CRs, and upon taking possession, buyers find themselves subjected to double Property Tax. If a 10-floor apartment complex is erected in breach of a seven-floor limit, all residents of the building are burdened with double Property Tax,” MLA Srivatsa elaborated.

READ ALSO  Rejuvenation of Kalyani adjacent to Siddalingapura Temple on Mysuru-Bengaluru Highway

“This issue disproportionately affects all buyers, particularly senior citizens and retired individuals who have invested their life savings. In many cases, builders evade responsibility. Officials from MUDA and the District Planning Authority must conduct regular inspections during the construction phase to prevent such violations. Unfortunately, the lack of rigorous monitoring allows these infractions to persist, leaving unwitting buyers to bear the brunt of double Property Tax annually,” Srivatsa noted.

“We have been advising buyers to check if builders have obtained the CR, but due to their lack of awareness, they end up paying double taxes. While minor violations can be corrected, significant deviations from the approved plan cannot be undone. The Government must take decisive action,” urged Srivatsa.

RERA toothless, short-staffed

Compounding the problem is the severe shortage of staff at the Real Estate Regulatory Authority (RERA), which greatly hampers its ability to check violations. There are over 1,400 cases against builders and developers in Mysuru pending before RERA for non-completion of projects on time, but only 900 of these cases have been resolved. RERA also faces a significant staff shortage, limiting its effectiveness.

“Additionally, RERA lacks the authority to facilitate refunds from builders to investors, leaving buyers with unresolved issues. I hope that decisive action will bring much-needed relief to the beleaguered apartment dwellers,” Srivatsa said.

Problems in layouts too

According to the MLA, the problem is not restricted to flats and apartments but even in layouts, such problem exists. “There is a mad scramble to buy sites and misusing this rush, builders sell layouts without even providing basic facilities like water, electricity and drainage system. There have been many complaints against private builders who have left site buyers in the lurch,” he added.

President of the Mysuru Chapter of Confederation of the Real Estate Developers’ Associations of India (CREDAI) D. Srihari echoed Srivatsa’s concerns. Speaking to Star of Mysore, he said that CREDAI has been demanding that the authorities carry out periodical verifications during apartment construction to prevent deviations and violations from the outset, but this isn’t happening.

READ ALSO  ‘Resume works on construction of blocked houses’

Some inexperienced builders exploit this, constructing buildings and selling them, leaving buyers in a precarious position. Even those who have booked the apartments must check if the building has CR before they occupy their new homes, he added.

Buyers must check beforehand

The repercussions for buyers are severe as they are forced to pay double Property Tax due to these unchecked violations. Srihari highlighted that buyers often focus on inspecting the interior conditions of apartments but neglect to verify if the building measurements are accurate or if the CR has been obtained.

The issue underscores the need for stricter enforcement of building codes and more rigorous inspections during the construction phase. CREDAI members, according to Srihari, adhere strictly to building bylaws and FAR guidelines to avoid inconveniencing buyers. He emphasised that regular inspections could prevent these violations and protect buyers from unforeseen tax burdens.

‘Commencement Certificate system must be enforced’

In Gujarat, there exists a mandatory Commencement Certificate system where builders must obtain clearance after completing the basement of any building. An officer visits the construction site to ensure compliance with regulations, and the Commencement Certificate is issued only when no violations are found. Even after issuance, regular inspections continue to prevent violations. Implementing a similar rule in Mysuru would greatly solve these issues. Mysuru City Corporation (MCC) does not issue Completion Reports (CR) for apartments that violate Floor Area Ratio (FAR) rules by more than 5 percent. Residents of such apartments are required to pay double Property Tax. —Ashaad-Ur-Rahman Shariff, MCC Commissioner

ABOUT

Mysuru’s favorite and largest circulated English evening daily has kept the citizens of Mysuru informed and entertained since 1978. Over the past 45 years, Star of Mysore has been the newspaper that Mysureans reach for every evening to know about the happenings in Mysuru city. The newspaper has feature rich articles and dedicated pages targeted at readers across the demographic spectrum of Mysuru city. With a readership of over 2,50,000 Star of Mysore has been the best connection between it’s readers and their leaders; between advertisers and customers; between Mysuru and Mysureans.

CONTACT

Academy News Papers Private Limited, Publishers, Star of Mysore & Mysuru Mithra, 15-C, Industrial ‘A’ Layout, Bannimantap, Mysuru-570015. Phone no. – 0821 249 6520

To advertise on Star of Mysore, email us at

Online Edition: [email protected]
Print Editon: [email protected]
For News/Press Release: [email protected]