NEW DELHI: The Delhi government has initiated an investigation into residential, commercial, and group housing projects where building plans might have been approved over the past five years without the necessary payment of the Infrastructure Development Charge (IFC).
Officials estimate this lapse has led to a substantial revenue loss, amounting to thousands of crores of rupees.
According to DJB minister Parvesh Verma, the inquiry was prompted by allegations of irregularities. Initial findings suggest that numerous applicants secured building plan approvals from the Municipal Corporation of Delhi (MCD) using official DJB letterheads instead of obtaining valid no-objection certificates (NOCs) to confirm IFC payment. Verma has raised concerns about the involvement of DJB engineers nearing retirement and MCD staff in this evasion.
This governmental action could result in notices being sent to property owners who constructed buildings in the last five years without having paid the required IFC. The government intends to recover these dues. Verma indicated that many individuals may not have made any payments to the DJB yet still received approval.
DJB imposes IFC on new constructions and property redevelopments to finance the city’s water and sewer infrastructure.
Data has been requested from officials regarding the number of building plans approved by the MCD over the past decade, and particularly how many applicants complied with the IFC requirements.
A preliminary review of approximately 300 properties covering over 3,000 square metres revealed that nearly 70% of these received building plan approvals without the necessary IFC payments. The verification process for other properties built during the past five years is ongoing.
Once the review is complete, the government plans to recover the IFC from property owners who have defaulted on their payments and may seal their properties if they fail to comply.
Despite the government reducing IFC by as much as 70% this past May, reports of irregularities in the collection process persist. The charge for Category A and B colonies was reduced from Rs 13.2 lakh to Rs 5.4 lakh. For Category E and F colonies, the fee was cut from Rs 3.3 lakh to Rs 2.7 lakh, while for G and H colonies, it decreased from Rs 3.3 lakh to Rs 1.6 lakh. This reduction aimed to alleviate financial pressures on property owners.
