GHMC: Net closes in on builder cheats

Hyderabad: The GHMC is plugging a loophole in the mortgage rules, which is allowing builders to construct buildings without handing over 10 per cent of the property to the civic body as a guarantee against breaking rules. The rule as it stands now says that any building coming up on a piece of land bigger than 300 sq. metres must mortgage 10 per cent of the property with the GHMC. According to a GHMC officer, some owners, to avoid the clause, were sub-dividing plots to less than 200 sq. m and obtaining permissions without mortgaging any property with the civic body.

As there is no mortgage or any requirement to secure an occupancy certificate for buildings on smaller plots, builders were making unauthorised constructions, he said. It has been suggested that the 10 per cent mortgage clause and the occupancy certificate be made mandatory for all buildings. GHMC commissioner Dr B. Janardhan Reddy said the civic body had sent the proposal to the government for a decision. “Once the rule is in place, mortgage and occupancy certificate be made mandatory for all builders,” he said.

The corporation was contemplating other proposals to seal illegal structures or floors, terming them “black properties”. As per the mortgage clause, builders, individuals and developers should hand over 10 per cent of the built-up area of the building to the corporation. Upon completion of the construction, the corporation checks if it has adhered to the approved plan and standard rules.

If the builder has stuck to the plan, the GHMC returns the mortgaged portion and provides an occupancy certificate. The corporation has the right to sell the mortgaged area or levy penalty for any violations of the sanctioned plan. It was found that about half the buildings constructed in the city in the last five years had no occupancy certificate. The buildings and flats were sold and occupied without getting the occupancy certificate.