Builders may pay double property tax for illegal buildings

Mumbai: Developers and builders might have to pay double the amount of property tax leviable on such building for constructing unauthorised buildings, and this fine would be charged as long as the buildings remain unauthorised. The urban development department has brought in an amendment in the Mumbai Municipal Corporation Act to hold errant builders responsible for constructing illegal buildings. The decision has come in wake of complaints of illegal constructions areas like Digha in Navi Mumbai and Diva in Thane.

The amendment will be presented in the ongoing budget session of the Legislature for approval. The new amendment will protect the residents of such illegal buildings who suffer after buying houses that are not authorised. Chief minister Devendra Fadnavis had announced last year that he would bring some relief to residents of such illegal constructions and punish builders. The new rule would be applicable to all municipal corporations.

The amendment states, “Whoever unlawfully constructs or reconstructs any building or part of a building on his land or on any land belonging to the government body, without prior permission, shall be liable to pay every year a penalty which shall be equal to twice the property tax leviable on such building so long as such building remains unauthorised. The levy should be without prejudice to any proceedings which may be taken against such person for such unlawful construction.” The amendment also states that the penalty provided shall be determined and collected as if the amount due were arrears of property tax.   

The amendment states that buyers usually suffer due to illegal constructions and hence the developer would be held responsible.  “Some unscrupulous elements after constructing the building unlawfully, sell the flats and units thereof to the buyers who purchase them under the genuine belief that such construction is duly authorised under the law. Since the amount of penalty is recovered as if it were the arrears of property tax such buyers are required to pay the penalty not for his fault.”

It continues, “Therefore it was proposed to provide that instead of levy of penalty at twice the amount of property tax, the amount of penalty shall be decided by the respective corporation within whose jurisdiction such building is situated. This levy of penalty shall not however, prelude the corporation from undertaking any proceedings against the person in respect of such unlawful construction.”

Due to the old policies about illegal construction, the Campa Cola building in Worli became controversial. Its residents were served notices to vacate the structure as the top few floors were constructed illegally. The illegal floors were demolished by the Brihanmumbai Municipal Corporation.

In suburban Mulund, Thane, Goregaon, Borivali, a few buildings were constructed on the forest land without seeking permission. Three lakh residents were affected after the revenue department sent notices, declaring the buildings illegal. The residents had to rush to the Supreme Court for relief. Cases in which residents were put in a spot after builders flouted rules.

In suburban Mulund, Thane, Goregaon, Borivali, a few buildings were constructed on the forest land without seeking permission. Three lakh residents were affected after the revenue department sent notices, declaring the buildings illegal. The residents had to rush to the Supreme Court for relief.