The Palike has drawn up a list of 583 buildings within the BBMP limits, for which leading builders developing them had not obtained plan approvals from it. The plan approvals and the subsequent Occupancy Certificates (OC) for these multi-storey buildings were, however, obtained from the BDA.
About 100 builders, including top players like Sobha Developers, Mantri Developers, Puravankara, Brigade Group, Prestige Group and Adarsha Developers, are now in the line of fire.
The Palike has decided to issue notices to all of them to pay compounding fee for the deviations in violation of the sanctioned plan and threatened to halt their works if they did not comply.
Rs 350 crore revenue
If the builders choose to pay, the Palike may mop up around Rs 350 crore. “If any of the 583 projects have been completed and flats are sold to individuals, we will stop their other projects in the City. We will ask them to pack up their businesses if they do not fall in line,” Chairman of the BBMP Town Planning Standing Committee C K Ramamurthy told Deccan Herald. For the past three years, the BBMP and the BDA have been at loggerheads over the issue of building plan approvals and OCs.
The fight intensified after the elected body in the Palike came into being last year. The Palike contends that if the building comes up in its limits, the plans and OCs have to be issued by it. But the BDA claims the job is its prerogative since it is the City’s planning authority.
With the full backing of all the 198 corporators, the Palike has decided to fight it out with all vigour. What pinches the Palike – already reeling under an acute financial crisis – is the belief that the BDA was issuing OCs without collecting the appropriate fee from builders.
‘BDA, an intruder’
On June 21, the BBMP standing committee had a meeting in the presence of Palike Commissioner Siddaiah and Jayanagar MLA Vijay Kumar and floor leader of the ruling party in the BBMP Council Nanjundappa. All those present were unanimous that the approval of building plans and the issue of OCs were within the BBMP jurisdiction and that the BDA was an “intruder.”
The Palike Council passed a resolution on June 29 to assert the BBMP's jurisdictional authority. The Council not only denounced the act of the BDA, but also revised the rates for the compounding fees for violations by the builders. The revised rates are three to five times higher than the existing rates.
Bone of contention
A leading builder said the general practice has been that whoever issues the commencement certificate should give the occupancy certificate (OC) too, after collecting the compounding fees.
“Issue of OC and approval of building plan has been a bone of contention between the BBMP and the BDA. The Government should give a clear-cut direction on the matter.”