Chennai Metropolitan Development Authority (CMDA) is all set to increase fourfold the security deposit for construction of buildings.
Deterrent to violationsThe increase in the security deposit is expected to emerge as a deterrent to violations in construction of ‘special buildings’ and ‘multi-storeyed buildings’.
A notification pertaining to increase in the security deposit is likely to be made next week. According to the proposal, the revised security deposit for ‘special buildings’ will increase from Rs. 50 per sq m to Rs. 200 per sq m of built up area. Builders of multi-storeyed buildings will have to remit a security deposit of Rs. 400 per sq m as against the existing amount of Rs. 100 per sq m.
Special buildings are residential or commercial buildings with more than two floors, residential buildings with more than six dwelling units or commercial buildings exceeding a floor area of 300 square metres.
Multi-storeyed buildings are those structures exceeding four floors and those rising to a height of 15.25 metres or more.
Refund“The builders who do not violate development regulations will get a refund of the security deposit after completion certificate is issued for the building. The increase will prevent builders or residents from deviating from the approved plan,” said an official of CMDA. CREDAI Chairman for code of conduct and consumer grievance redressal forum T. Chitty Babu said the increase in security deposit “will affect the end consumer and only add to the cost of construction.”
‘Different yardsticks’“The CMDA has different yardsticks for issue of completion certificate and refund of security deposit. Security deposits of some buildings with completion certificates are yet to be refunded,” said N. Mathavan, a builder.
