As part of the implementation of the Layout Regularisation Scheme (LRS), the Revanth Reddy government has taken a key decision. It has provided an opportunity for registration of unauthorised layouts and plots that have been pending for the past four years. The government has also decided to give a 25% discount on LRS fees. Under the LRS scheme, the regularization fee can be directly paid at sub-registrar offices, and registration can be done there. If 10% of the plots in a layout are registered, and the remaining 90% are not, the authorities have been instructed to allow regularisation and registration of those plots under the LRS scheme.
The government has provided the opportunity to complete the LRS process by paying the prescribed fee at the sub-registrar office of the concerned area. The sub-registrar will collect the details of such plots in the specified format and send them to the LRS portal for processing. Before registration, the relevant layout or plots within it must receive an NOC (No Objection Certificate) from the Irrigation Department, Revenue, and HMDA officials, confirming that there are no issues with the water body’s Full Tank Level (FTL), buffer zones, prohibited list, or any other disputes. This is considered as the Level-1 permission category.
For unauthorised layouts under this scheme, those who pay the fee before or by March 31, 2025, will be granted a 25% discount on regularisation fees and open space charges. Those who have already paid some fees will be allowed to pay the remaining amount, with the discount applied to the pending balance.
On September 16, 2020, the then BRS government issued GO 135 concerning the LRS scheme, which set penalties for the regularization of unauthorized layouts. The penalty varies based on market values and land area. If a person directly applies for building permission, they must pay the LRS penalty along with a 14% open space charge and an additional 33% compound penalty. However, if the layout is regularized under the LRS scheme, the 33% additional penalty is waived.
According to the previous orders issued for the LRS scheme, the penalty rates are determined based on the market value of the land. If the market rate per square yard is between Rs 3,000 and Rs 5,000, the penalty is set at 30%. For rates between Rs 5,000 and Rs 10,000, the penalty increases to 40%, and for rates between Rs 10,000 and Rs 20,000, the penalty is 50%. If the market rate falls between Rs 20,000 and Rs 30,000, the penalty is 60%, while for rates between Rs 30,000 and Rs 50,000, the penalty rises to 80%. Finally, if the market rate exceeds Rs 50,000 per square yard, the penalty is the highest at 100%.
For example, let’s assume there is a 200 square yard plot within the HMDA limits, and the market value is Rs 5,000 per square yard. The total value of the 200 square yard plot would be Rs 10 lakhs (Rs 5,000 x 200). Since the market value is below Rs 5,000 per square yard, it falls under the 30% penalty slab.
The regularisation fee on this plot would be 30% of Rs 10 lakhs, which equals Rs 3 lakhs.
In addition, the open space charges would be calculated as 0.14% of the area (for land), amounting to 33.6 square yards.
If the open space charge is Rs 2,000 per square yard, the total open space charge would be Rs 67,200 (Rs 2,000 x 33.6).
Thus, the total regularisation fee, including the open space charge, would be Rs 3,67,200 (Rs 3,00,000 + Rs 67,200).
If the regularisation is done under the LRS scheme before March 31, 2025, a 25% discount would be applicable, which amounts to Rs 66,800. After applying the discount, the total amount payable would be Rs 3,00,400 (Rs 3,67,200 – Rs 66,800).
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