Builders mull legal action against ‘betterment charges’ by AMC
Dec 24, 2013
Source : The Times of India


AHMEDABAD: Circulars recently shot off by the Ahmedabad Municipal Corporation (AMC) to developers asking them to pay “betterment charges” and even demanding land cuts have stirred a hornet’s nest. Ambitious residential and commercial real estatereal estate projects that were announced within the 200-metre buffer zone along the BRTS corridor-to ensure transit-oriented development – and for which FSI of up to four was proposed, have now come to a standstill.

Developers are now in a dilemma and most of them have either stalled work on their projects or postponed it citing ‘environmental clearance issues’.

“The AMC is charging us money illegally under the guise of betterment charges. We are not ready to pay up because we know that it is unfair and it will double our project costs. We are in the process of challenging this move in the court,” said a developer who has announced a project in Sola.

“The new development plan was not in place when the builders announced their projects. Besides, as the DP is in draft stage, the land deduction is still not clear. Following the AMC notification, developers are expected to pay up to 20% more over the current jantri rate. This could increase land costs which would ultimately be passed on to the consumer,” said Vijay Shah, GCCI’s urban committee chairman.

The worst-affected areas are Ambli, Bodakdev, Sola, a few places in Ghatlodia, Naroda, Nikol, Chandkheda and Gota, among others.

NK Patel, another developer, said, “If a builder is keen to start a project in these areas, he will have to pay twice the jantri rate in the name of betterment charges, which are illegal. We expect a lot of petitions to be filed against AMC in this matter as no developer would be in a position to pay so much extra for doubtful reasons.”

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