1.0 Introduction
The last few years has seen a series of actions by Govt. which had resorted to various unlawful means to increase its revenue. At the end of the day, the public has been badly let down. While the illegal actions enabled Govt. agencies to rake in money initially, later that too became difficult. Revenue from Registrations and Building and Layout approvals has plummeted.
In their eagerness to make quick money, Govt. has virtually made plots and apartments absolutely unaffordable to People. Now the Govt is looking to make people suffer MORE with a new GO (GOMS288).
- Auctions Caused Plot and Land Price increases
In our earlier Reports we had explained how artificially raised prices at Auctions, by HUDA and other agencies, had forced market price for land, to ramp up .
- GOMS86-Building Rules and Regulations Caused Apartment prices to hit the roof.
We have also discussed in detail about the Building Rules & Regulation GO (GO MS 86) released in early 2006, which caused construction activity to grind to a halt and totally wipe out availability, causing sudden price rise of over 60% for Apartment in 2006. (Please see Table Below)
(Note: the 60% rise in 2006 was SOLELY due to GOMS86. The Apartment Rates indicated is for stand-alone apartments in Localities, around Hitec City)
- GOMS86-Building Rules and Regulations - Unusually Large Fees to be borne by Buyers
GOMS 86 had also brought-in
unusually large fees which increase drastically, as the height of the building goes up. The approval fees at higher floor levels are
more than construction cost itself. This is why
even after 2 years of Govt. bringing free FSI, we do not find true high-rise buildings in Hyderabad unlike all other Cities.
Since the apartments costs in high-rises will be unbearable to buyers, builders continue to build 4 to 5 floor apartments all over the place, with large deviation. The resulting
horizontal expansion kills open areas, puts pressure on breathing space, water, drainage and other public infrastructure around such areas.
90% of the buyers have no choice but to save money by buying in thousands of such low quality apartments, coming up in Manikonda /Puppalaguda/ Nizampet Road, Miyapur, Pragathi Nagar etc.
So the dreams of
vertical Expansion which is the hall mark of a fast developing city
is KILLED by the Govt itself, with its lop-sided fee regime! In its eagerness, very large fees was applied, hoping that large number of high-rises will come, filling treasury with approval fees!
But the fact is that the high fees has killed this expectation. Instead, builders are limiting to 4 to 5 floor apartments, where the fee is very less.
If Govt can subdue its greediness and come up
with a rational fee structure, it can actually make money! Unfortunately the IAS morons, have no interest in all this.
While Govt. is perceived by public as protector of our wealth and is expected to act in the interest of the public, what we have seen is rampant, illegal actions causing misery to lakhs of people in the state.
After all this Tamasha, has Govt. really been able to raise money for all its needs? NOT AT ALL. The treasury continues to be in bad shape with revenue dwindling.
2.0 Another Gutter Policy destined to raise prices by 50% , is now Released.
The Recent GO (GOMS288) which was supposed to explain Zonal Regulations in Master Plan in HUDA Areas,
has been conveniently hijacked by the scheming Govt to push-in new Building and Layout Rules.
The
earlier mischief caused by GO86,
must have been found to be insufficient by Govt.
60% rise in price of apartments in 2006
is not at all enough, it feels. It wishes to increase rates by another 50% for apartments and plots this year and push the public down the gutter.
Till this GO is thrown out as unconstitutional by Courts, be ready to face 50% increase in property rates. Read On.... .....
3.0 GOMS 288 is full of Stinking "S - - T "
The GO tells that in any Apartment Complex, Gated Villa Layouts and in Plot Layouts, Constructed area and land area has to be left for certain purposes which the BIG BROTHER Orders.
That is, in a private property, a third Party (the Govt, in this case) tells that space is to be left for certain uses, totally unconnected with the project!
The Govt will NOT give permission for new projects
- Unless you give 10% of land FREE OF COST to Govt itself! (Pure day light ROBBERY!)
- Unless you handover 5% of your plots flats, Villas FREE OF COSTS to Govt to give to EWC (Economically Weaker Secitions- When we enquired with a Govt officer we were told that this category is for people who does such works as sewerage cleaning etc)
- Unless you Allocate 10% of your plots, flats, Villas to LIG
- Unless you Allocate 10% of your plots flats, Villas to MIG
By simple logic, if the above is correct as per the Constitution of India, then it means that Govt can bring out another GO and ask any individual to leave space/rooms to EWS in a new House, that he plans to build. Otherwise no Building Permission will be given!
This is nothing but an affront on personal and business freedom and shall not be entertained at all. The GO requires the masses to rise and act before individual freedom is trampled upon by a mindless, blundering Govt.
4.0 Apartment Complexes: Flats to be left for EWS, LIG, MIG etc
Applicable to any Apartment Venture in Land size of 4000SQMand above (4047SQM=1 Acre)
Please note that there is no restriction on price mentioned in GO. Lets say per SFT Rate in a Integrated Township is Rs.4000/sft + 5L for amenities, corpus fund etc, EWS has to buy flat of 216 sft at 12.3Lakhs.
Come on! Which EWS will buy such peanut sized apartment for 12.3Lakhs?!
If they are
EWS, where do they get 12.3 Lakh from, Dear Blunder Pradesh Govt????!!!
Which
Bank will give Loan of say 10L to an EWS? Can a person capable of paying
Rs.11,000 EMI per Month, be called an EWS??????????
Obviously, this Govt Order is coming from certain people, with their brains in the wrong place of their body, somewhere below and behind.
So if the units can not be practically sold to EWS, LIG and MIG then what are these units being made for?
5.0 Gated Villa Layouts - Know your neighbor before you spend crores!
Applicable to any Gated Villa Venture in Land size of 4000SQM and above
(For Ref. 4047SQM=1 Acre)
Just imagine such houses, in Gated Villa Layouts! Its absolutely unclear
how EWS people will buy these Villas, at market rate. Off course your swimming Pool, Sauna and Jacuzzi will be shared by all, in the grandiose plan of the those, who made this GO.
The IAS babus have
no time to think of consequences!In fact there is no need to think! In this banana republic, they will get another GO issued, exempting IAS officers colonies from such requirements! Simple!
6.0 Plot Layouts - But there are NO PLOTS TO SELL!
The GO divides plot layouts into 2 types.
Above 4 Hectares (10 Acres) and
above 20 Hectares( 50 Acres)
There is
no provision to make plot layouts of
less than 10 acres!! YOU ARE BARRED FROM ATTEMPTING TO MAKE A SMALL LAYOUT!
Since IAS BABUs play with
sacks of Black Money, they have not heard of smaller land parcels
below 10 Acres. They have
TOO much love for SC/ ST and EWS (sic!), but they think NO human being should be allowed to make a plot layout of below 10 Acres.
So what do we do with say 5 acres?
Obviously this GO is totally HOLLOW. It has NO LOVE LOST for the down- trodden! The intention of the GO is quite different. There is no mystery! .........Read on and you will know!
6.1 "Land Pooling Scheme" - Plot Layouts above 50 Acres. Developers! Be ready to vacate Hyderabad en-masse! YOU ARE UNWELCOME IN THIS CITY according to the Govt.
There is NO land available for selling as residential plots after all this allocation!!
If you add everything, dear readers, you get 103%!!!! (Please check yourself).
That now proves without doubt where the brains of the guys, who made this GO are!!
So where is the land to be sold to as plots?!!!
Why should any one buy land and make a layout at all?!!!! And what about the 3% land? Will HUDA generate it from Air? And off course 25% plots have to be mortgaged to HUDA too!
Incidentally, under the Land Pooling section, the GO suddenly talks about construction:
QUOTE:
". The balance area of saleable area shall clearly give the type of housing development that would be undertaken viz., detached houses, semi-detached houses, row type houses, duplex housing, condominiums, apartment complexes, cluster housing, etc or a mix of all or combination of the above.
UNQUOTE
While the whole section is only about Land Pooling Scheme with no mention of Gated Community Concept, the above sentence is the only reference to construction. The GO is full of errors and mismatches between clauses.
What do they actually mean by Land Pooling Scheme vis-a-vis Layout Developemnt Scheme, is unclear. We are sure no one in Govt. will be able to give any clarity. They simply would do not know, what they themselves have written!
6.2 Layout development scheme: Plot Layouts above 10 Acres: Only 30% to sell and out of that 25% is under Mortgage!
The land available, after the above allocation, is just 30% to sell!
And out of this 30%, 25% has to be mortgaged and hence can not be sold. So effectively you have 5% to sell without Control of Govt!
ITS ABSOLUTELY SURE THAT NO PLOT LAYOUT, GATED COMMUNITY OR APARTMENT TOWNSHIP PROJECT WILL COME UP IN HYDERABAD, AS LONG AS THIS PIECE OF LOIN CLOTH, HANGS AT THE AP SECRETARIAT.
All Developers who were fooled to bid for HUDA land at Rs.10 to 30 Crore per Acre have been taken for a joy ride! DLFs, UNITECHs, Manthris, Indus, ITBPs, PEBLs and all others can only rue their hard luck of having been coerced to invest in AP!
7.0 Why this Hollow, Ill written, Trash GO?
From what we understand,
the Central Govt is doling out crores to State Govts under a scheme called Jawaharlal Nehru Urban Renewal Mission. To get certain portion of funds under this scheme, the
State Govt should demonstrate that they are building homes for weaker sections in the city and are taking care of their social responsibility.
Unfortunately, the asses in the Govt has found
an easy way out! Instead of developing Govt land for such purposes,
they want private land owners to do the work for Govt!!! In effect the Govt could get away by forcing individuals to do,
anything that the Govt want. Can it?
If for
giving layout permission, 10% land has to be handed over to Govt,
then tomorrow for Getting Passport they may ask to surrender one room or part of our plot. To get TAX Identification Number or Pan Number
a Company or an individual may have to give one room in its office building to GHMC or HUDA
Anything and everything that is illegal could be demanded by Govt, if this GO is not shot down. Its an affront on individual freedom.
Is this allowed in Democracy? Even the British in India would not have attempted to curtail personal and business freedom, to such extent!
Why did the country become free Democracy with a lawful constitution, if Govts were to meddle with your private life and business?
8.0 Price Increase is Certain unless the GO is Trashed
By bringing such stupid orders, Govt is
intentionally looking to jack up land and apartment prices, so that it can get more by way of registration cost. And also Money from Union Govt under JNRUM Scheme. It has no interest in EWS care nor intention to take on social reponsibility!
Just
plain reading of the GO would tell anyone, that
price of plots and apartments will shoot up soon, if this GO is allowed to stay. When restrictions are applied and builders can't develop projects,
there will be short-supply in a few months. When supply reduces the demand will drive prices up as it happened in 2006
Also if a Builder were in fact to attempt a Apartment Township with such complexities and constraints,
price will be up by at least Rs.1000/sft. Plot layouts
should cost at least 50% More.
In effect, this circus by the Govt is going to force
Buyer of Apartment and Plots to shell out money for the land/apartments that Developer can not sell! When you book a Rs.75 Lakhs Apartment, you will in fact be paying, close to 30% of it (approximation), on behalf of someone else for his apartment!! Moreover, since price will shoot up, if this GO remains, you will have to be satisfied with a pigeon hole for 75Lakhs, instead of a 3 bed Luxury Apartment which otherwise you could have bought with that much of money. Great Democracy this!
9.0 Strong Legal Action from Builders Federation is the need of the hour
The Govt. has signed the Death Nell for Hyderabad. In its naked greed to make quick money, its
bleeding public and business to death.
Reminds you about the classic storey of
the hen that laid Golden Eggs?
Slowly all companies will get out of Hyderabad. They have to look for cities with proper Government and level headed officers.
Unfortunately, unlike other cities,
Hyderabad does not have a very unified Builder's Federation.Will
FICCI or CII agree, if
AP Govt asks 15% of production from every factory to be sent to the Govt's Godowns? Will
anyone put up Industries in AP if Govt says that
it will give permission only if the Industrialists, agree to such terms?
The Govt is taking the Real Estate Industry for a ride, since the Federation is not strong. Its high time that
Builders come together and support the Hyderabad Builders's Forum and immediately resort to STERN legal action against all illegal orders of the Govt. The Forum should NOT
waste time discussing a totally erratic and unlawful GO, with the Govt officers. Its written badly, its structured badly and it has rotten content.
What is the use of negotiating with a group of bums who created the mess, in the first place? They will not be able to explain or understand anything since their intention itself is to commit criminal offence.
This matter can only be dealt in courts and since the GO challenges right to freedom enshrined in the constitution, it will be trashed by the courts. Pending court decision a stay should be obtained and status-quo maintained so that there is no price run again in Hyderabad.
Lets hope that wise sense will prevail and this PIECE OF UGLY LOIN CLOTH will be shredded soon!
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