It is known that alarming penalties have been collected by the Greater Hyderabad Municipal Corporation (GHMC) from unauthorized constructions. However, elected representatives and residents have been resenting over these higher penalties. The corporation, therefore, proposed to reduce the fine to be paid by the illegal building owners.
Builders involved in constructions without permission from GHMC have been sent notices. Buildings of Circle 9 including Himayatnagar, Hyderguda, Liberty Kukatpally and L. B. Nagar have been sent notices. Under schedule U, section 596 of the GHMC Act, about 400% on the land value for non-high rise buildings and 600% for high-rise and commercial buildings with illegal additional floors has been collected by the corporation.
However, it is now proposed to collect building fee and 33% additional fee on permissible area and implement 400 to 600% on additional built-up area. For instance, when a building with ground + three floors is constructed where only two floors are permissible as per the building rules, then the builder will have to pay 33% fine on the permissible G+2 floors and 400% extra on the extra floor which ultimately reduces the penalty amount. However, no official sanction will be offered by the corporation. Neglecting the demolition, it even proposes to blow 25% additional property tax every year until the regularization of building is completed.