Pune: Maharashtra state government has given its approval to a proposal from the Pune Metropolitan Region Development Authority (PMRDA) that seeks to reduce the steep fees citizens must pay to regularize their homes under the Gunthewari Law.
The Gunthewari Act, which governs unauthorized housing developments, had previously set a deadline for regularizing houses built before 2001.
Over time, unauthorized constructions continued to proliferate, leading to heightened calls for an extension of the regularization window. Responding to this, the Maharashtra government had extended the cut-off to December 31, 2020, for houses eligible under the Gunthewari Act.
However, many residents avoided applying for regularization due to the exorbitant fees imposed, which were calculated based on ready reckoner rates, the "Unified Development Control and Promotion Regulations (UDCPR)," and penalties for not adhering to building norms.
The fight for Fee Reductions led by activists like Sudhir Kulkarni, the President of the Civil Rights Association, public demand grew for a reduction in the fees.
Responding to these calls, the Urban Development Department of the Maharashtra government issued directives in October 2021, allowing PMRDA to determine its own fee structure within government-set maximum limits. This proposal for a fee reduction had been awaiting approval for several months.
In a recent meeting of the Pune Metropolitan Planning Committee, chaired by Chief Minister Eknath Shinde, the long-pending proposal was finally approved.
While the approval is a step in the right direction, concerns remain about the actual impact of the fee reduction, with many experts stating that the concession may still fall short of addressing the needs of all affected homeowners.
How the New Fee Structure Will Work
Under the old fee structure, homeowners who built on plots without permission faced exorbitant costs for regularization.
For instance, a 3,000 square-foot home on a 1,000 square-foot plot could cost residents significant sums due to development fees, mitigation fees for excess construction, and penalties for failing to maintain proper setbacks.
The new structure offers a reprieve:
The development fee for the legally permissible portion of the construction (1.10 FSI) will now be calculated at twice the ready reckoner rate, rather than three times, offering considerable savings.
The mitigation fee for excess construction will be reduced from 10% to 4% of the ready reckoner rate.
Penalties for not maintaining the required setbacks during construction will also drop from 10% to 4%.