The Hindu : Front Page : SCB loses crores

Online edition of India's National Newspaper
Saturday, Aug 30, 2008
ePaper | Mobile/PDA Version

Front Page

Front Page

SCB loses crores

Fails to cash in on ‘commercial’ rule

HYDERABAD: The bucolic Secunderabad Cantonment Board (SCB) has not been immune to rapid constructions witnessed in the capital during the last few years. Commercial space developed on some of the roads of this once residential downtown can rival even the posh Banjara Hills and Jubilee Hills.

Unfortunately, it has not translated to any form of revenue to SCB because, save for a couple of cases, it has not been issuing permits for commercial buildings! Almost all shopping complexes hosting a dazzling array of goods have been built on permissions obtained for residential purposes. Even if we consider that there was little fee variation till recently for taking sanctions for residential or commercial constructions, the property tax lost could easily run into crores of rupees. In fact, the amount can easily replace the existing Toll and Octroi tax collection against which there is a public outcry.

The startling fact about not giving permissions for commercial buildings came out when Chief Executive Officer V. Premchand, permitted conversion of a private function palace into a commercial complex a few days ago for which a whopping Rs. 50 lakh upwards was realised as fee.

Illegal conversion

Tongues wagged as the word “commercial” does not figure in the rules although CEO has the powers to issue permits provided he was satisfied with the purpose for which the sanction was being obtained. Once and for all, it changed the marked reluctance of SCB to give sanction for commercial buildings even when there was rampant illegal conversion of residential buildings.

“We could have easily earned up to Rs. 100 crore if correct building fee was collected over the years,” admitted Mr. Premchand. Two years ago, he had increased the requisite fee from a Rs. 50 to Rs. 500 per SFT band depending upon the plot area for residential and Rs. 1,000 per SFT for commercial.

Till then it was about Rs. 50 per SFT for any building. Officials estimate that of the 1,000 commercial buildings under SCB, all have turned commercial without taking requisite permissions.

Printer friendly page
Send this article to Friends by E-Mail

Front Page