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http://epaperbeta.timesofindia.com/Article.aspx?eid=31809&articlexml...

The Times of India

Title : Occupancy certificate mandatory in all municipalities in Telangana
Author : Koride Mahesh
Location :
Hyderabad
Article Date : 10/25/2015
Municipal Chiefs Told To Implement Order In Local Bodies
Owners of unauthorised constructions in Telangana might have to cough up more tax with the municipal
administration department mandating an occupancy certificate (OC) for all new buildings in municipal
corporations and municipalities in the state. It has directed coordinated action by the town planning and tax
wings of the urban local bodies to ensure property tax assessment of all new buildings.

An occupancy certificate is issued by the town planning wings of the urban local bodies to property owners
or builders once construction is completed. Before issuing such certificates, the town planning staff inspect
the buildings to assess for any deviations or unauthorised structures that are not built as per the approved
building plans.

Though the rule has been in existence, it was only the Greater Hyderabad Municipal Corporation that has
been implementing it and collecting additional property tax from owners of illegally constructed buildings
and their occupants. Municipal corporations and municipalities are empowered to bring any such illegal
structure into the tax net and even impose additional tax till that unauthorised structure is either demolished
or regularised by the government.
The orders were issued by the commissioner of municipal administration recently to all urban local bodies
based on the draft thematic report on `Levy and Collection of Taxes by Urban Local Bodies in Telangana'
prepared by the principal accountant general (General & Social Sector Audit) and included in the CAG's
report in March 2015.

Officials said as per AP Building Rules of 2012, occupancy certificate is mandatory for all new buildings
other than those built in 100 sq metres with height up to 7 metres.The provision was incorporated mainly to
prevent illegal structures and also to check evasion of taxes. It also said no person shall occupy the buildings
unless the building is granted an OC by the respective municipality or corporation. The OC is also
compulsory for obtaining electricity and water connections to the buildings. If the owner fails to produce the
OC and still wants these connections, the utility agencies can collect three times more than the normal
charges for releasing water and electricity connections.
Whenever building permissions are granted by the town planning wing, copies of the sanctioned plans
should be marked to the revenue wing without fail to enable them to assess and levy the property tax and to
verify deviations and illegal structures, B Janardhan Reddy , commissioner of municipal administration
department said in his orders.
Officials said due to lack of such coordination, the local bodies were not only losing out on collecting
building fees but also property taxes affecting their revenues. Municipal commissioners of the respective
municipalities have been made responsible for implementing the orders.

10/25/2015 9:36 AM

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