State eases rules to give realtors a ‘gift'

Two government wings on Thursday hastily amended regulations regarding gifting land and setting aside land for the poor. The amendments were made following the slump in the real-estate sector, said the principal secretary, Mr S.P. Singh, municipal administration and urban development (Maud) department. As per the amendments, developers will not be required to "gift" five per cent of the developed area to Huda. They will instead be required to pay 1.5 times the basic value of the land. The earlier rule stipulated that the five per cent land was meant "for disposal for residential/commercial use." This has been amended to "provision of master plan facilities." This condition will be applicable to sites located outside the GHMC limits.

The amendments will also be applicable to the development promotion regulations of Hyderabad Airport Development Authority master plan. Developers see this as a ploy by the government to avoid legal complications as the provision for "gifting" land as such is against the Constitution. The amendments also brought down the reservation of land for housing from 10 to five per cent. A new provision was added under group housing schemes wherein the developers will be required to part with three per cent of land to Huda. The land to be reserved for low income group housing has been brought down from 10 to five per cent. The requirement for reservation of land for housing for middle income groups has been done away with. Builders have been given scope to develop land for Economically Weaker Section houses within a five-km radius of the existing site. Incentives have been provided in the form of waiver of fees and other charges on EWS plots or dwelling units.