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Home > News > Hc Nods To Infrastructure Levy On Builder And Developers

HC nods to infrastructure levy on builder and developers

Infrawindow News Bureau

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Chennai

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Aug. 30, 2013, 03:48 PM

The  infrastructure levy, initially amounted to about 100 per sqft of built up area for new multi-storeyed buildings in the city, came into force in 2008 as the government thought private developers derived "appreciable gains" in development and hence share the cost involved in creating infrastructure of international standards in the state. The government reduced the rates a year later. However, some builders had challenged it in the court.

 

 Madras high court has give a nod to the government’s user-pay policy of imposing infrastructure and amenities (I&A) charges on builders and developers who construct residential and commercial structures on Thursday.



Additional advocate-general P H Arvindh Pandian argued that massive developments were taking place all around the state and developers were not providing necessary infrastructure to residents of townships being developed by them. The government, instead, is forced to provide all necessary infrastructures for ensuring sustainable development and the financial commitment in this regard is substantial.



Agreeing with him and upholding the legality of the newly inserted provisions in Section 63 of the Tamil Nadu Town and Country Planning (Levy of Infrastructure and Amenity Charges) Rules 2008, a division bench comprising Justice R Banumathi and Justice T S Sivagnanam said: "Promoters develop properties without providing basic infrastructure. Under such circumstances, the user-pay concept is a solution for sustainable development.
 



Noting that the right to develop a property is not unfettered but subject to restrictions, the judges said: "Merely because builders have acquired interest in vast extent of land, as a matter of right they cannot claim that they would be entitled to construct buildings consisting of any number of floors and compel the authorities to grant permission for such development. When such large-scale development of properties is done with several floors, the government thought it fit to consider those as special cases, and by taking note of the impact that would be caused to other parameters, decided to levy and collect I&A charges."
 



The judges rejected developers' submission that providing water and sewerage facilities to land owners and developers was a public duty, statutorily imposed on state agencies and hence no additional charges should be levied. They also rejected the argument that I&A charges would amount to multiple levy, as promoters already were paying water and sewerage charges under Section 59 of the Rules. "I&A is a levy with a distinct purpose, object and intent," the bench held.

 

The levy was to meet the impact of development and for ensuring sustainable development.
 

 




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