Huda may double land service fees

Hyderabad, Jan. 17: The Hyderabad Urban Development Authority is all set to enhance the fees collected with regard to formation of layouts and construction of buildings, increasing the burden on the average property-buyer. Officials said that Chief Minister Y.S. Rajasekhar Reddy gave the go-ahead to Huda’s proposals during his meeting on Monday with officials of the municipal administration and urban development department and Huda. The Chief Minister approved the setting up of the Hyderabad Metro Development Authority during this meeting.
Officials secured Dr Reddy’s approval to enhance development charges both for land and built-up area. Officials are working out new rates, which could be at least double the existing rates. Officials told this correspondent that the Chief Minister did not specify the quantum of increase. Sources indicated that the development charges for land would be made above Rs 300 per square metre (sqm) and that of built-up area to Rs 100-Rs 125 per sqm. Sources said the officials were also considering increase in the processing fee of Rs 5 per sqm but no final decision had been taken yet.
Currently, Huda collects a maximum of Rs 125 per sqm towards development charges for land and Rs 40 per sqm for built-up area. “It will work out to be Rs 12.5 per square feet (sft) and Rs 4 per sft respectively. Builders have been collecting Rs 1,000 to Rs 2,000 per sft for apartments,” the officials are believed to have told the Chief Minister.
Huda vice-chairman and managing director Jayesh Ranjan told this correspondent that the increase would not be across the board. It would vary from panchayats in Huda limits to municipal areas and those falling in MCH limits. Mr Rajan said that the hike could not wait till the formation of the HMDA. “They are two separate things. It will take some time for HMDA to materialise as it requires an amendment to the Act. We will go ahead with enhancement of development fees,” Mr Rajan said. “The rates have remained unchanged for more than a decade and we can see how the land rates have shot up,” Huda chairman D. Sudheer Reddy said.