Developers await implementation of development charges waiver

The Pune Metropolitan Region Development Authority (PMRDA) in May declared the waiver of additional development charges collected from July 2018 to April 2023. However, this decision, taken by Chief Minister Eknath Shinde, who also serves as the Chairman of PMRDA is yet to receive a statutory status causing concerns among developers and citizens. The PMRDA continues to charge the building permission charges while the planning authority has also increased it with 100 per cent hike from this financial year.

There is a provision in the statute that planning authority can charge double development charges for vital transport and other infrastructure projects. Hence, the PMRDA had proposed additional development charged from July 2018 to April 2023 for the Metro line-3-Hinjewadi to Shivajinagar.

The state government’s decision to waive off the additional development charges, which were collected over the past five years, has not been implemented due to the absence of an amendment in the existing rules.

A senior PMRDA official requesting anonymity said, “Most people, including developers who obtained permissions between July 2018 and April 2023, have already paid a single development tax. However, the arrears of additional development charges still remain unpaid by the developers, which is reflected in their completed properties.”

To address this problem, officials said, the PMRDA is working on a proposal that suggests granting a three to four-month period for developers to pay the outstanding additional development charges. This time frame takes into consideration the expectation that the state government will make the necessary amendments to the law and issue a notification regarding the waiver.

Sunil Marale, joint director of town planning at PMRDA explained, “Decisions expected from the government involve a procedure. We have submitted the waiver proposal to the state government, which will be discussed in a government level meet. Following that, the government will issue a notification to that effect. Only then can we implement waiver at PMRDA level.”

In the interim, PMRDA is taking precautions by obtaining affidavits from developers, ensuring that they will pay the additional charges if there are any changes or legal challenges to the state government’s decision.

Expressing her opinion on the matter, Shanital Kataria, former president of the Confederation of Real Estate Developers’ Associations of India (CREDAI) Pune, said, “The decision taken by PMRDA is practical and will benefit both developers and the general public. While it involves procedural steps that will require some waiting, it is expected to yield positive results.”