No Regularization Of Shops Built In Road-facing Houses, ET RealEstate

June 23, 2023

<p>Representative Image</p>
Representative Image

AHMEDABAD: Illegal shops and showrooms built in road-facing residential properties in Ahmedabad will not be legalized under the new impact fee law. The law mandates property owners to provide a minimum of 50% parking space for commercial use on such properties. However, due to space crunch, these properties cannot fulfil the parking requirement.

Officials from the urban development department and the Ahmedabad Municipal Corporation (AMC) have confirmed that shops constructed in road-facing bungalows, tenements, rowhouses, or duplexes, will not be regularized as they constitute a “change of use”.

The impact fee law, known as the Gujarat Regularization of Unauthorized Development Ordinance, 2022, came into effect on October 17, 2022. Property owners had four months to apply for exemption for their illegal constructions. The deadline was extended to February 16 this year.

Despite the extension, the AMC has only approved around 700 applications out of the 36,349 received as of June 1. The deadline to apply for property regularization is June 16, and the approval rate has been disappointingly low.

The situation is even worse for properties seeking regularization in Ahmedabad urban development authority (AUDA) areas. Sources from AUDA reveal that they have received 1,236 impact fee applications, of which 110 have been rejected, and only six have been approved.

Experts attribute the low approval rate to property owners’ inability to provide the required parking. “While the AMC has allowed some owners to provide parking in nearby locations, it is not a feasible solution for all properties,” says a senior official from the AMC’s town planning department.

The official explained that owners must show the prescribed 50% parking within a 500m vicinity of the property within three months of the order to be eligible for regularization. Owners can pay an impact fee to cover the remaining 50% parking requirement. “However, there is no provision for an appeal in such cases,” the official adds.

As of June 1, the AMC has received 36,349 applications for impact fee, with 1,435 applications processed and disposed of. Only 700 applicants have been asked to pay the impact fee. The official said, “During site visits to 15,506 properties in Ahmedabad city, 90% of the approved applications were for residential construction, while only 10% were for commercial constructions.”

  • Published On Jun 2, 2023 at 04:00 PM IST

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