The building mortgage clause in GO No.86 issued by the Greater Hyderabad Municipal Corporation (GHMC) in 2006 got screwed up and has raised the need to act strictly to check residential and commercial buildings constructed by the builders as well as the individual residential units. The mortgage clause is intended to curb the illegal constructions in the city.
As per the mortgage clause, the builders, individuals and developers should handover 10 percent of the total built up area of the building to the corporation. Upon completion of the construction, the corporation checks if it is constructed as per the approved plan following the standard building rules. If the construction is done as per the sanctioned plan, then it returns the mortgaged portion and provides an occupancy certificate (OC). However, the corporation has a right to sell the mortgaged area or levy penalty for violations upon deviation from the plan.
It was found that about 50 percent of the buildings constructed in the city in the last five years have no occupancy certificates. While nearly 30,000 building plans were sanctioned by the corporation, only 15,000 of them got the certificates. It was even evident that the buildings and flats could have been sold and later occupied without getting OC from GHMC.
Source: Deccan Chronicle