Delhi's MCD Imposes New Building Plan Charges

The Municipal Corporation of Delhi (MCD) is set to impose a compensatory regulatory charge, an extra fee for obtaining building plan approval for all properties, including residential ones. This decision aims to enhance the civic infrastructure in MCD areas. Previously, this fee was only applicable in areas under the former North corporation. However, since the unification of the three civic bodies, there has been a consistent demand to extend this charge to the entire MCD jurisdiction. Consequently, the cost of constructing houses in Delhi, particularly in south and east Delhi, where this fee was not previously applicable, is expected to rise. The unified building by-laws authorise MCD to impose charges when approving building plans. The funds collected through this charge will be directed towards the maintenance and development of civic infrastructure in MCD areas, including regularised colonies and village abadis. The charge for a property will be based on its proposed built-up area, determined by the prevailing circle rate in that specific colony. For example, a residential property in category A with a plot size of up to 250 square meters will incur a charge of Rs 387 per square meter. The charge for a similar plot in category B will be Rs 122.70 per square meter, and so on. For residential plots over 250 square meters, the charges will be higher. Civic officials initially proposed this uniform charge on September 5, but it was postponed. Subsequently, based on feedback from institutions developed on large plots with only a portion used for building, the charges were adjusted to be calculated based on the total built-up area rather than the size of the entire plot. The proposal was re-tabled in the House and approved, with charges to be applied when obtaining MCD's approval for building plans for new or additional structures.