Rera Alters Project Cost Rule For Amc, Real Estate News, ET RealEstate
AHMEDABAD: In a recent development in Ahmedabad’s town planning procedures, the Gujarat Real Estate Regulatory Authority (Rera) has relieved the Ahmedabad Municipal Corporation (AMC) from seeking its opinion on project costs to calculate construction cess.
The issue revolved around the 1% state construction cess on the total project cost of a real estate development before the city civic authority grants building use permission (BU).
“Developers sometimes understate project costs in their BU applications, resulting in a significant loss of revenue,” said an AMC official. In response, Rera requested AMC’s town planning department to seek its opinion on project costs to ensure accurate cess calculations.
On November 3, 2022, the AMC town planning department issued a circular mandating officials to consult Rera to determine the project costs. However, this new requirement led to an increase in Rera’s workload. The authority wrote to AMC on August 21, requesting the civic body to no longer seek project cost opinions.
On September 27, the town planning department issued a circular instructing officials to cross-verify the project cost mentioned by developers in both the BU permission and Rera application. After confirming there was no disparity in the project cost, officials were directed to calculate the 1% construction cess.
The circular also required officials to obtain a certified copy of the project cost submitted to Rera from the builder while accepting their BU permission application, thereby eliminating the need to seek Rera’s opinion on project cost.
