Auda For 40% Land Cut, Real Estate News, ET RealEstate

June 26, 2023

AHMEDABAD: In an important decision which will have impact on many plotting schemes approved before 2010, the Ahmedabad Urban Development Authority (Auda) has decided that 40% of land deduction will have to be made if the developer changes the purpose of a subplot in a plotting scheme.

This means that if the plotting scheme had been sanctioned with a purpose of bungalows on all its subplots, and the developer decides to merge subplots and constructs a residential apartment or commercial buildings on it, then in such cases, the developer will have to deduct 40% of land for public spaces, such as roads and gardens.

So far, plotting schemes approved before 2010 in an intended TP scheme were exempted from mandatory 40% land deduction from the original plot if the subplots have been sold by the developer.

On June 9, during a discussion on a proposal of the draft TP scheme in Shela, the Auda board members found that land deduction from some of the subplots in a plotting scheme was less than 40%. Auda officials explained that it was because of the policy of not deducting 40% land from plotting schemes in subplots that are already sold. The board decided that if the builder changes the purpose of the subplots which are sold or unsold then 40% of the land will be deducted as per rules.

A senior official in Auda, who did not wish to be named, said that there are many plotting schemes in areas such as Bopal and Ghuma which were merged with Ahmedabad Municipal Corporation (AMC) and Auda areas such as Shela with their layout plans sanctioned before 2010.

“There was an ongoing discussion on how much land should be deducted in such plotting schemes. The state government had clarified that if the subplots in a plotting scheme are sold then there will not be any deduction apart from the roads already demarcated in the layout,” the officials said.

“However, some developers were changing the purpose of unsold subplots and constructing apartments or commercial buildings in their plotting schemes and were taking benefits of zero deduction or less deduction policy. So, Auda has decided to implement a 2017 resolution which mandates that 40% of the land will be deducted from sold or unsold subplots in a plotting scheme sanctioned before 2010 if the developers change their purpose later,” the official said.

The official said that the zero or less deduction benefit will apply only to those subplots which were sold before 2010 when the plotting scheme was sanctioned. He said that this will have an impact on plotting of about nine TP schemes in areas such as Bopal, Ghuma and Shela.

  • Published On Jun 25, 2023 at 04:00 PM IST

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