As per a new GO issued by the Municipal Administration and Urban Development (MA&UD) department, the development charges imposed on the builders for construction of buildings in the extended areas of Hyderabad Metropolitan Development Authority (HMDA) has been increased by 50%.
Therefore, the builders now have to pay 75% of the actual development charges, which was only 25% since February 2009. The GO also stated that several development activities have come up in the extended area of the authority, covering about 620 villages and municipalities of the surrounding districts like Bhongir and Sangareddy.
According to the sources, the development charges were kept low all these years only to encourage the building activity in the extended area. Now that so many activities being conducted and since the HMDA’s financial position is not so great, the development charges are the only source of regular revenue for the authority, thus, the civic body is left with no other choice than hiking the charges.
The GO also mentioned that HMDA will collect 75% of the development charges in the erstwhile HUDA and Hyderabad Development Authority (HADA) jurisdiction as per the GO 439 issues in June, 2007.