All individual residential building constructions done on 100 sq. metres of plot size anywhere in the State, including municipal corporations, municipalities, urban development authorities and panchayats have been exempted from the 10 per cent mortgage clause.

In orders issued on Thursday, Principal Secretary (Municipal Administration & Urban Development) B. Sam Bob said the decision was taken keeping in view the practical difficulties experienced in implementing the provision and also to avoid hardships to individual residential building owners. The government had also received several representations from the public and the GHMC Standing Committee too had passed a resolution to request such an exemption be made. The decision was taken after detailed discussions with the GHMC, HMDA, DTCP and others. Mortgage clause is also exempt to individual residential buildings with a single kitchen coming up in 200 sq. mt. plots in municipal corporations and urban development authorities with a height of six metres. It has been taken off for individual residential buildings with a single kitchen coming up in plots of 300 sq. mts too in the municipalities for a height of six metres.

As per the mortgage clause which came into being along with the common building rules of GO 86, 10 per cent of built-up space either in the ground, first or second floor has to be handed over to the local municipal sanctioning authority through a notarised affidavit by the owner. The same would be entered in the prohibitory property watch register of the Registration Department. The mortgaged space cannot be sold and if an owner deviates construction of the building from the sanctioned plan it becomes the property of the sanctioned authority. But, the municipal authority too cannot sell it, only option is to demolish the portion.

The clause was limited to high-rise buildings and individual residential buildings in plots of 300 sq.mts in corporations/UDAs and 600 sq.mts in municipalities.