CHENNAI: Now flats in Chennai are likely to become a tad more costly since the Chennai Metropolitan Development Authority (CMDA) has decided to charge four times the previous security deposit from the builder while issuing planning permission.
T Chitty Babu, chairman for Code of Conduct (COC) and Consumer Grievance Redressal Forum (CGRF), Confederation of Real Estate Developers’ Associations (CREDAI), told CE that the rise in security deposit for getting planning permission for new buildings would be passed on to the buyers.
He said this would now be another component along with the rise in cement and sand prices.
CREDAI had opposed the hike in security deposit, but it was shot down by the CMDA, said Babu.
A senior CMDA official said the new rates came into effect from January 29 last. A Government Order in this regard was passed on December 29, 2013.
A CMDA official said that the new rates will be implemented from the date of issue of Gazette. “We had already given them (builders) one month’s time, since the GO came in December,” he said. The plan to increase the security deposit was conceived during a monitoring committee meeting to curb illegal development.
A subcommittee of the monitoring committee had then proposed that the security deposit normally collectable while issuing planning permission be multiplied to curb the violations. However, sources said since it was being passed on to the buyers, the whole purpose of hike would prove to be futile.