PRESENTASION

ON
FEE/CHARGES
FOR BUILDING AND LAYOUT
APPROVAL
 Fee/Charges for Building approval
Authorities which collect fee for building approval
1. Municipalities / Municipal Corporations /
Development Authorities
2. Gram Panchayats in case of site falling in G.P limits
3. Labour Welfare Department (Labour Cess)
4. Mines and Geology Department (Green Fee)
5. DT&CP (Scrutiny Fee) in case of ULB falling in
DT&CP limits
 Statutory Provision

Existing Legal Provision

 

According to Section 344 of AP Municipal Act, it states that Every license and

building permission granted under this Act or any rule or bye-law made under

this Act shall specify the period of any for which, and the restrictions,

limitations and condition subject to which, the same is granted, and shall be

signed by the commissioner. Save as otherwise expressly provided in or

prescribed under this Act, for every such license or permission, fees are

charged on such units and at such rates as may be fixed by the council.

 
Act Existing Provision

AP MC Act, Section 622(2) mentions Fees to be Chargeable - For every such license
1955 or written permission a fee may be charged at such rate as shall from
time to time be fixed by the Commissioner, with the sanction of the
Corporation.

AP Section 344(2) mentions Save as otherwise expressly provided in or

Municipal prescribed under this Act, for every such license or permission, fees be
Act, 1965 charged on such units and at such rates as may be fixed by the council.

APCRDA Chapter XII – 123 (1) The Authority may levy a betterment charge or
Act 2014, impact fee or Urban Infrastructure Fee as prescribed to capture some
share of the increase in valuation that is likely to accrue to land owners
due to a new development proposed or implemented by the Authority
or Government or a third party.
Chapter III -18 (2) (h) the procedure for assessment, levy and collection
of impact fee, cess, development charges, urban infrastructure fee and
calculation and assessment for the land and buildings;
Chapter XI – 108 (1) (b) payment of the development charges and other
fees and charges to the Authority to be levied under the Act.
Act Existing Provision
APMR&UD
A Act, 2016 Chapter-II 6(2)(b) mentions to prepare the schedule of various
categories of fees and development charges and submit them to the
Authority for approval;
Chapter VIII - 100 (1) Subject to the provisions of the Act and rules made
there  under, the Authority shall levy a charge, hereinafter called
development charge on:-  
Chapter V – 21 (5) the cost of publication charges in the newspapers
pertaining to the scheme; 
Fee & Charges Existing Provision mentioned in the relevant Act
Building Under Provisions of Rule 3(17) of AP Building Rules 2017, “No Building
Permit Fee application shall be deemed valid unless and until the owner submitting the
and Other application has paid the Building Permit Fee and other charges as notified by
Charges the concerned Authority from time to time as per the procedure prescribed”.

Development In ULBs not covered by UDAs: Government have specified rates of

Charges Development Charges to be collected in Municipalities. In Go Ms no. 158 MA
dt: 22-03-1996 under section -44(1)&(2)of the APTP Act 1920.
In ULBs covered by UDAs: Under section 100&118 R/w section 5(3)(e) of APMR
& UDA Act, the UDAs can collect Development Charges and the Government in
their orders Go Ms. No 87 MA dt : 28-02-2018 have specified rate of
Development Charges to be collected in the areas covered by UDAs.
City level Under provisions of Rule 109 of AP Building Rules 2017,in addition to Building
Impact Fee permit fee and other charges payable, City/Area level Impact Fee shall be
payable for height of floors above 15 meters where the height of the Building
or Block is more than 15 meters at the rates specified therein.
Drainage As per AP MC Act 1955, section 444(a), The erection of any such building on
Betterment either side of a new street may be disapproved by the commissioner, unless
Charge and until such new street has been levelled, metalled or paved, sewered and
drained to the satisfaction of commissioner [and drainage betterment charges
as fixed by the commissioner, from time to time, have been paid] {amended by
Act 6 of 1984}
Fee & Charges Existing Provision mentioned in the relevant Act
Betterment As per APMR&UDA Act 2016, Section 104. (1) The Authority may levy a
charge /Impact betterment charge or impact fee or Urban Infrastructure Fee as prescribed to
fee /Urban capture some share of the increase in valuation that is likely to accrue to land
Infrastructure owners due to a new development proposed or implemented by the
Fee Authority or Government or a third party.
External As per AP MC Act 1955, Section 463(a), that in any street or portion of street
Betterment specified in such notice the elevation and construction or the frontage or all
Charges  buildings or any classes of buildings thereafter erected or re-erected shall in
respect of their architectural features be such as the Corporation may
consider suitable to the locality.
Subdivision As Per AP MC Act 1955, Section 388, Notice to be given to commissioner of
Charges intention to layout lands for building and private streets
Shelter Fee Under Provisions of Rule 178 of AP Building Rules 2017, in case of all
Residential Group Housing/ Group Development schemes whose land extent
is more than 4000 sqm and up to Ac 5.00 cents, Shelter fee shall be collected
at the rates specified.
Green Fee Govt vide G.O. Ms no 112(Industries & Commerce )(Mines-II) Dept dt:30-08-
2017 have issued orders to collect Green Fee @ Rs 3/- per sqft for the Building
exceeding 5000 sqft Built-up area.
Labour Fee G.O. Ms No. 112 Labour Employment training and factories dept dt:-15-12-2009 have
issued orders to collect 1% cess on the Estimated cost of construction under “Building
and other construction workers (Regulation of Employment and conditions of service) Act 1996.
 Power of Government
Act Existing Provision
Andhra Under Section 326 Power of Government to make rules:
Pradesh The Government may by notification in Andhra Pradesh Gazette make
Municipal rules for carrying out all or any of the purposes of this act.
Act 1965 Under Section 326-2(a), (s), (3) Power of Government to make rules  
With reference to all matters expressly required or allowed by this act to
be prescribed.
In making any rule, the Government may provide that a breach thereof
shall be punishable with a fine which may extend to one hundred
rupees.
Under Section 330 - 12(a),(b),(c) Power of council to make bye-laws
(a) for the regulation of the building;
(b) for determining the information and plans to be submitted with
applications to build;
Under Section 330 –A Power of Government to make rules in lieu of
bye-laws
If, in respect of any matters specified in section 330 the council has failed
to make any bye-laws or if the bye-laws made by it are not, in the
opinion of the Government, adequate, the Government may make rules
providing for such matters as they may think fit.
Act Existing Provision
Andhra Under Section 585 Power to make Rules:-
Pradesh 1. The Government may, by notification in Andhra Pradesh Gazette,
Municipal make rules for carrying out all or any of the purposes of this act.
Corporation 2. In making such rule, the Government may direct that a breach
Act 1955 thereof shall be punishable with fine which may extend to rupees
five hundred and if the breach is a continuing one a further fine
which may extend to rupees twenty for every day after the first
day during which the breach has been made.
AP CRDA Act Under section 18(1) of the Act, The Government after consultation
2014 with the authority may by notification make rules to carry out the
functions of the authority and to carry out the purposes of the act:
Provided that consultations with the Authority shall not be necessary
on the first occasion of the making of Rules under this section.
APMR&UDA Under Section 116(1) of the Act read with 117(6):
Act 2016 1. The Government after consultation with the authority may by
notification make rules to carry out the functions of the Authority
and to carry out the purposes of the Act.
2. Provided that consultations with the Authority shall not be
necessary on the first occasion of the making of rules under the
section.
 Initial Security Deposit
• No building application shall be deemed valid unless and until the owner
submitting the application has paid the Building Permit Fees and other
charges as notified by the concerned Authority from time to time as per the
procedure prescribed.
• The initial fee of the Building Permit Fee of the proposed building to be
paid along with the Application for Building
Plot area (Sq.M) Initial fee to be paid (Rs.)
Up to 200 3000
Above 200 10000

• The balance Building Permit/License Fees together with other fees and
Charges shall be paid before the issue of permission / sanction on
intimation. In case of rejection of building application, the above initial fees
paid would be forfeited.
• No fees and charges would be levied for parking spaces provided in any
floor.
 Main Fee Components which have to be
paid at the time of building approval
• Building Permit Fee/Building License Fee
• Betterment Charges
• 14% Open Space Charges
• 1% Labour Cess
• Development Charges
• Green Fee
• Shelter Fee
• City Level Infrastructure impact fee
 Building permit/Building License Fee
Rate in Rupees for different site areas
S.No Type of ULB Type of Building High rise
upto 200 200 to 500 above 500 Building
Municipal Corporation Residential Building 15 to 30 30 to 60 70 to 80 70 to 100
1 (GVMC,VMC,GMC)
(3) Non Residential Building 35 to 70 60 to 100 120 to 150 150

Municipal Corporation Residential Building 15 to 20 30 to 40 50 to 75 60 to 100

2 (Othen than
GVMC,VMC,GMC)
(11) Non Residential Building 35 60 to 70 70 to 120 100 to 150

Municipalities Residential Building 15 25 60 80

3 (Special and Selection
Grade Municipalities)
(11) Non Residential Building 30 60 100 120

Municipalities
(other than Special and Residential Building 10 to 50 15 to 50 30 to 50 32 to 100
Selection Grade
4 Municipalities including
Nagar Panchayats) Non Residential Building 20 to 50 25 to 60 50 to 100 50 to 100
(85)
 Betterment Charges
and
14% Open Space Charges
This fee is collected in the following situations:
When the site falls in Unauthorised layout and
Newly developed area
 1% Labour cess

• This fee is levied by Labour welfare department

and collected through APDPMS.
• If Construction cost more than 10 lakhs then 1%
of Labour fee will be collected
– Three is two components in APDPMS
• Labour cess component – 1
– 98% of 1% Labour cess component
• Labour cess component - 2
– 2% of 1% Labour cess component for application and
maintainces
 Development Charges
(In case of site falling in other than
Development Authority)
• RATES OF DEVELOPMENT CHARGES LEVIED UNDER SECTION 18A, 18B OF APTP ACT 1920
AND RULE 51A OF THE RULES ISSUED UNDER THE ACT (Other than UDA areas)
• G.O.Ms.No.158A MA&UD Dept., Dt:22.03.1996
 Development Charges
(In case of site falling in Development Authority)
RATES OF DEVELOPMENT CHARGES TO BE LEVIED UNDER SECTIONS 100 AND 118 READ WITH
SUBSECTION (3) (e) of Section 5 of ANDHRA PRADESH METROPOLITAN REGION & URBAN
DEVELOPMENT AUTHORITY ACT, 2016 FOR ALL URBAN DEVEOPMENT AUTHORITIES
(G.O.Ms.No.87, Dated: 27.02.2018)
 Green Fee

• This fee is levied by Mines & Minerals

department and collected through APDPMS.
• Levy and collection of Green Fee @ Rs.3/- per
Sq.ft on the built up area of more than 5,000
sq.ft as per the approved building plan by the
Competent Authority.
 Shelter Fee
• In case of all Residential Group Housing/Group Development
Schemes whose land extent is more than 4000sq. m and up to
5.00 Acres shelter fee shall be collected as follows:-
(1) The following shelter fee to be levied
S. No. Area Rate per Sq. m (Rs)
1 GVMC; VMC; GMC 750
2 Other Municipal Corporations 600
3 Selection Grade & Special Grade Municipalities 500
i) Other Municipalities
ii) Gram Panchayats falling in Development Authorities
4 400
iii) Gram Panchayats falling in areas notified under
APTP Act,1920

Cont.,
• The shelter fee shall be collected for 20% of total site area of the project.
• The shelter fee collected shall be utilized for development of EWS/LIG
housing under any other Urban Housing Scheme meant for EWS
categories or for undertaking civic amenities in slums and weaker section
colonies only, for which a separate account shall be maintained by the
local body/Development Authority. The shelter fee can also be utilized
for redevelopment/improvement/ rehabilitation of slums under Slum
Development programme as local body share.
• In the sites above 5 acres it is optional to the developers to pay shelter
fee as above in lieu of providing EWS and LIG houses.
• The projects below 4000Sq.m are exempted from reservation of built up
area/number of
• units for Economically Weaker Section/Low Income Group as well as
payment of shelter fee.
 City Level Infrastructure impact fee
• With a view to ensure development of city level
infrastructure facilities, the City Level Infrastructure Impact
Fees shall be levied in case of large projects/buildings as
given in the table No.4 A.P Building rules
• For the first five floors of the building (excluding stilt floor)
there will be no levy of City Level Infrastructure Impact Fee.
• In case of Multiplex Complex, the rates given in the
Multiplex Complex Rules shall be applicable.
• The Government may revise the above rates from time to
time.

Cont.,
• The above rates shall not be applicable for Government
Departments and Public Agencies like Development Authority,
Andhra Pradesh Industrial Infrastructure Corporation (APIIC)
and Local bodies. This exemption shall not be applicable for
commercial projects taken up by such agencies.
• The amount levied and collected under the above Rule shall
be credited and maintained in a separate escrow account by
the concerned sanctioning authority and 50% of it shall be
utilised for development of infrastructure in the same area
and balance amount is to be utilised towards improvement of
city level capital infrastructure in the area. An Infrastructure
Plan and Action Plan for implementation is required to be
undertaken by the Competent Authority and the said Fund is
utilised accordingly.
The various Fee heads collected for Building Permission at present.
As on date, 60 fees are collected from 110 urban local bodies.
S.No Budget Head S.No. Budget Head
1 Application Fee 31 Paper Notification / Publication Charges
2 Application fee(Penalty) 32 Penal amount
3 Additional Building 33 Postal Charges
license fee
4 Building Application Fee 34 Postage (Advt Charges)
5 Building permit fee-UDA 35 Penalization charges
6 Building License Fee- 36 Previous Application pending amount
ULBs
7 Building material charges 37 Paper Publication Charges
8 BT Road charges 38 Processing fee
9 Bathroom Charges 39 Rain water harvesting charges
10 Betterment charges 40 Rolling shutter
11 Citizen Charter Charges 41 Scrutiny Fee
12 Compound Wall Charges 42 Scrutiny Deposit
13 Compounding Fee 43 Special Development Charges(IRR)
14 Conversion Fees 44 Shelter fee
15 Corpus Fund 45 Stair Case Charges
16 City level infrastructure fee
17 Doors Windows and
Ventilators charges (DWV)
18 Debris Charges
19 Drainage charges
20 Development charges
(Built up area)
21 Development charges
(Vacant land)
22 Development charges (IRR)
23 External Betterment
charges
24 Gate Charges
25 Green fee charges
26 Impact fee
27 Material encroachment fee
28 Material storage charges
29 Open space charges
30 Open space contribution
charges
46 Site approval fee
47 Septic Tank Charges
48 Sub division charges
49 Technical Scrutiny Fee
50 Technical Scrutiny Fee (DTCP)
51 Toilet Charges
52 Tree Guard Charges
53 ULB Development Charges
54 Water Closet
55 Water Resource Charges(Rain Water
Harvesting Structures
56 Water Tank charges
57 1% Labor cess
58 14% open space charges
59 33% Penalization charges
60 33% of compounding fee on penal
amount
 Fee/Charges for Layout approval
Dept Description Type Calculation Gram Nagar Grade 1 Spl Other GVMC
logic Panchayat, Panchayat and and Corpor /
Rate & Grade3 Grade 2 Selecti ations VMC/
Municipali Munici on GMC
ties palities grade Rate
Rate
1.a UDA Layout Permit fee Any Upto 2 5000 5000 5000 7500 7500 10000
/ULB (initial fee) Initial Fee hectares
(table 1 of g.o# 275) 10000 10000 10000 12500 12500 15000
For GPs– deposited >2 and <=10
in UDA account hectares
>10 hectares 15000 15000 15000 17500 17500 20000
1.b UDA/ULB For ULBs (UDA and Balance fee Per hectare 10000 10000 15000 20000 25000 25000
Non UDA areas) – (after deducting or part there
Deposited in Single Initial fee) of
pool Account
Commercial All rates per 15 25 25 25 25 50
(In Case of sqm
Mixed Res
Comm Buildings
commercial rate
is applied on
Total)

Industrial All rates per 15 20 20 20 20 30

sqm
Miscellaneous All rates per 10 20 20 20 20 30
sqm
 Fee/Charges for Layout approval
a) Processing fee
• additional budget head “processing fee” for VUDA and NUDA as per their rates
• Rates :
• Gram Panchayats :
– Residential @Rs.3/-per Sq.mt, and
– Non residential @ Rs.4/- per Sq.mt
• Municipalities and Nagar panchayats:
– Residential @Rs.4/-per Sq.mt
– Non residential @Rs.5/-per Sq.mt
• Municipal corporations :
– Residential Rs.5/per Sq.mt
– Non residential Rs.6/- per 1Sq.mt in
b) DTCP user charges for all applications of all UDAs and Ulbs : Rs.10000/- per
each application
• Revision cases – applicable
• Revalidation cases – Applicable
• Shortfall / Resubmission cases– Not applicable
 Proposed Common Fee System
• Common fee system: By subsuming all the existing fees, a common fee is
developed. The fee has been generated on the basis of built up area per Square
meter (Built up area/ Sq.mt.)
• Specific fee: Apart from the common fee system that is to be paid mandatorily by
all the applicants/clients a specific fee has been levied.
• Thought the proposed Common fee system address the problem of complexity, but
there are certain fee/charges that cannot be added in the common fee system. The
following table represents the charges/fees that are not applicable to all buildings
proposals.
List of Specific fees
Betterment Charges
Site approval fee Applicable in Area not covered by Approved layouts and
newly built-up area.
Sub division charges
City level infrastructure High rise buildings
1% Labor CESS 1% on cost of construction cost exceeding 10 lakh
Shelter fee In case of all Residential Group Housing/Group
Development Schemes whose land extent is more than
4000 sq.m and up to 5.00 Acres
14% open space Area not Covered by Approved layouts and newly built-up
area
 Benefits with the Common Application System
Brings more transparency & clarity in the system and contributes to
EoDB.
No loss to ULBs in terms of Revenue.
Encourages every citizen to fulfill his/her dream of owning house.
Attracts investors thereby improves economic potential of the ULB/DA
Achieves the principles of Good Governance
Creates hassle free environment and win to win situation between
citizens and ULBs

Impact of revenue system on the amount released as fees:

The amount collected in the existing system and the amount collected
after subsuming the fees into one common fee system is almost equal.
There may be a difference of +/- 10% at the maximum.
THANK YOU