Bank guarantee too much to bear

People dont collect house completion certificates, corporations perplexed

The provision of depositing bank guarantee for getting completion certificate for houses having stilt parking is forcing home owners to abstain from collecting completion certificates of their properties from municipal corporations.

As a result, people are shifting into houses without bothering to apply for completion certificate since getting the certificate will entail lakhs of rupees.

The problem has arisen because of a circular passed by the corporations last year, which made it mandatory to take a bank guarantee from property owners. The bank guarantee can go up to Rs 20 lakh for a 500 sqm plot. The bank guarantee amount is deposited with the corporation for five years.

The provision of submitting bank guarantee was a step introduced to check misuse of stilt parking by property owners. As per the law, the bank guarantee will be forfeited by corporations in case the designated parking space is covered by the owner later on. The officials, however, said the provision has forced people not to apply for completion certificate.

“An owner of a 500 sqm plot will have to submit around Rs 20 lakh to get the completion certificate. The total cost of constructing a house will be the same. But nobody would like to get their money blocked for five years. So hardly anybody is applying for completion certificate,” said a senior corporation official.

The Master Plan Delhi 2012 makes provision of stilt parking on the ground floor mandatory for getting building plan passed by civic bodies.

The size of the plot determines the parking space that has to be created.  “For instance, a plot measuring 100 sqm, two equivalent car spaces (ECS) will have to be created in the building. Each ECS has a different rate depending on the category of colony. In posh colonies that come under A and B categories, the rate per ECS is Rs 2 lakh,” an official said.

In view of the problems faced by property owners, officials are planning to request the Lieutenant Governor to intervene and make changes to the circular.

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