Many buildings are being constructed in the city without permission from the Greater Hyderabad Municipal Corporation (GHMC). There has also been a rise in the number of unauthorized structures. The corporation, as per the GHMC Act, 2009, section 455 A, decided to give permissions to the structures which were built without permission only if they had followed the standard current building norms. Also, it had proposed a 33% penalty on the unauthorized structures. This is helping the corporation in two ways including additional revenue generation and prevention of illegal constructions. In addition, the Act also allowed collecting compounding fee for minor deviations such as setbacks and balcony deviations.
Since February 2010, the corporation, through off site real time (OSRT) images, had captured 1,862 unauthorized buildings which were under construction. Of them, 1,258 had permissions but deviated from sanctioned plan. About 531 structures were made in deviation from the sanctioned plan and only 732 were constructed as per the sanctioned plan. Also, there were 604 buildings which were unauthorized and being constructed without permission. Only 200 unauthorized buildings with illegal floors and other major violations were demolished till now.
One of the main reasons for unauthorized building constructions is found to be fear of the mortgage rule. Building constructions above 100 square meter plot area should mortgage a portion of it to the corporation till the completion of construction as per the approved plan. However, it is later altered by the Municipal Administration and Urban Development (MA&UD) and the mortgage rule was made compulsory to those above 200 square meter plots.