Registration of plots in unauthorised layouts stopped; Credai hails decision

Visakhapatnam: The decision to prohibit registration of plots in unauthorised layouts has evoked a mixed reaction in Andhra Pradesh.

While realty agents and a section of builders expressed their anger over the decision, Credai-the apex body for real estate developers said they are always in favour of only authorised layouts and constructions. "We have never supported the culture of unauthorised layouts as we always take up ventures only after securing all the required approvals," Credai Visakhapatnam chapter chairman B Srinivasa Rao told Bizz Buzz on Thursday.

However, employees who due to ignorance developed layouts on their own have now landed in soup. Earlier, the local bodies and urban development authorities used to regularise illegal layouts under Land Regularisation Scheme (LRS). However, the recent order issued by Commissioner and Inspector General of Stamps and Registrations V Ramakrishna to the officials concerned not to entertain pleas for registration for any plot/layout without valid approvals has put buyers in such layouts in a fix.

The decision has also slowed down the pace of registrations, which had gained pace to a large extent some time ago following reports that the government is planning to increase land rates from April 1.

"We request the government to consider those who bought plots in unauthorised layouts on a case to case basis as most of them are from lower middle income groups," said S Sanyasi Rao, a realty agent in Madhurawada area.

The government, which is desperately trying to increase its revenue due to increasing debt and commitment towards welfare schemes, has come to the conclusion that allowing plots in layouts not approved by the Directorate of Town and Country Planning (DTCP) will lead to substantial loss of revenue to the municipalities and other civic bodies. Official sources said there are 10,169 unauthorised layouts spread over 37,684 acres out of which 4,176 layouts are said to have roads, 814 power supply and 362 layouts drinking water availability. As many as 29,000-odd layouts are close to the urban area limits where real estate prices have gone up abnormally in recent years.

The government in an order directed the district registrars and inspector general of stamps and registrations to adhere to the government's new circular not to register plots without valid approvals failing which it has threatened disciplinary action including dismissal from service.