Understanding Unapproved and Illegal Layout Regularisation Scheme in Telangana – First Part.

This is an attempt to write a series of articles about  GO Ms No. 131 of 2020, which was issued for regularisation of unapproved and illegal Lay-outs in the state of Telangana. This is Part -1. 

The Government of Telangana desired to develop a planned and sustainable development in both Urban and Rural areas across the state of Telangana. The biggest obstacle in this process are  various Unapproved  and Illegal Lay -outs situated across the state. 

To streamline  and regularize all these Layouts,  the Govt of Telangana framed certain  Rules which are called as “Telangana Regularization of Unapproved and illegal Layout Rules, 2020“ and  issued a Notification bearing  GO Ms No. 131 of 2020 on 31st day of August 2020  through its Municipal Administration and Urban Development Department . The same was modified through G.O.Ms. No. 135 dated 16.09.2020. 

By implementing these rules along with the other provision of the earlier relevant Acts and rules, The Govt of Telangana made it mandatory to all Unapproved and Illegal Layout owners and Plot owners to regularise all them  by paying  regularisation charges  as  prescribed under these rules for a stipulated period.

What is meant by Unapproved layout?

The Rules defines “ the Unapproved/illegal layout” as sub-division of land into plots with or without developed roads, open spaces and amenities and without the approval of the Competent Authority ; 

Following questions arise in our mind  

  1. What  is the criteria for regularisation of Unapproved and Illegal layouts under these Rules ?  
  2. How to calculate the Regularisation Charges?
  3. Are there any exceptions for Regularisation Under these Rules? 
  4. Many other queries – FAQs.

I will make a sincere attempt to address many of the FAQs through these articles.

The“Telangana Regularization of Unapproved and Illegal Layout Rules, 2020 clearely stated as under; 

“ (b)These Rules and conditions herein shall be applicable to all existing unapproved sub-division of plots, existing unapproved layouts or ventures to be promoted by land owners/ private developers/ firms/ companies/ property developers /Societies where 

(i) the plots have been sold through a registered sale deed, 

(ii) unauthorized layouts developed provided at least 10% of plots are sold through Registered Deed,on or before 26.08.2020. 

(c) These Rules are only intended for regulating the unplanned development and shall be applicable to all unapproved layout areas which have clearance from the competent authorities under the Urban Land Ceiling and Regulation Act 1976, Telangana Land Reforms (Ceiling on Agricultural Holdings) Act, 1973 wherever required and which have not been entered in the Prohibitory Register of lands maintained by the Revenue Department. The regularization measure would not absolve the plots or layout from the application of Land Ceiling Laws, land disputes or claims over title, boundary disputes, etc. In respect of assigned lands, prior clearance from the District Collector shall be obtained. 

(d) In the event of only some plot holders coming forward for regularization in an unapproved layout, the layout pattern as approved by the competent authority shall be applicable to the entire layout area. The local authority shall be responsible for enforcing such approved layout patterns. 

(e) No registration of plots shall be done henceforth in all such unauthorized and unapproved layouts and no building permissions shall be granted under the relevant provisions in such layouts. Regularization of plots / layouts is a pre-condition for registration / sale of such plots / obtaining building approval / construction.”

How to calculate the Regularisation Fee: As per the “Telangana Regularization of Unapproved and Illegal Layout Rules, 2020” the below mentioned charges shall be applicable for the regularisation as per the area of the plot. 

5 TABLE – I 

BASIC REGULARISATION CHARGES

Plot Area in Sq.mtBasic Regularization Charges Rs. per Sq.mt
Less than 100200
101 to 300400
301 to 500600 
Above 500 750
Slums 5 (irrespective of plot area and land value) 

(i) The actual regularization charges will be the percentage of basic regularization charges and shall be calculated based on the land value prevailing as on 26.08.2020 as given below. 

TABLE – II 

REGULARISATION CHARGES WITH REFERENCE TO THE LAND VALUE 

Market value of the land as on 26.08.2020(Sub Register value) in Rs per Square YardRegularization Charges (% of basic regularization charges as mentioned in above table )
Below 3,00020%
3001 to 500030%
5001 to 1000040%
10001 to 2000050%
20001 to 3000060%
30001 to 4000080%
40001 to 50000100%

In addition to these charges the open space charges  and land conversion charges shall be calculated as under: 

(ii) “Pro-rata open space charges”: If 10% open space is not available in the un-approved layout pro-rata open space charges @ 14% of the plot value prevailing as on the date of registration of such plot shall be paid”. 

(iii) Conversion charges as prescribed in rule 9 of the Rules. 

(iv) The LRS regularization charges include NALA charges also and no separate NALA charges shall be paid.

(b) The above charges shall be remitted within three (3) months of intimation and latest by 31.01.2021, whichever is earlier, either in installments or in one go within this time period, failing which regularization of plot will not be considered and will be treated as unauthorized. No relaxation of time shall be granted.

CALCULATION OF FEE

(i)  Basic Charges

For Better understanding The calculation of Regularisation charges are as follows:

Example: If X owns a plot of land comprising 100 Sq mts,  the conversion charges  per sq mt is Rs. 200. So, the total conversion charges are 100×200 = Rs.20,000/-  (Please read the Table 1 and 2 together)

Scenario_1: If the Govt rate  of the plot (Card Value/Sub-registrar’s value) per sq meter is  Rs. 3,500/- 25% of the conversion charges shall be paid. I.e 25% of 20,000/- is 20,000 x 25/100 = i.e. conversion charges of Rs. 5,000/- shall be paid by the plot owner/developer.  

Scenario_2: Govt rate  of the plot (Card Value/Sub-registrar’s value) per sq meter is  Rs. 5,500/- 40% of the conversion charges shall be paid. I.e 40% of 20,000/- is 20,000 x 40/100 = i.e. conversion charges of Rs. 8,000/- shall be paid by the plot owner/developer. 

(ii) Pro-rata Open Space Charges

The plot owner/Developer shall pay the open space charges along with the conversion charges @ 14% on the Govt rate Per Sq Mtr on a pro rata basis. i.e 

If in a Layout the builder has left only 8% of the open area out of the mandatory 10% openspace the regularisation charges shall be calculated  for the remaining 2% land. 

Example: If a builder/developer Left 18Sq mts open space in a 200 Sq Mtr plot (instead of 20 sq.Mts). The Regularisation charges shall be charged on the remaining 2 Sq. yards on the Government rate of the area @14%.  

For calculation of pro-rata open space charges @ 14% of the plot value, one should take the prevailing Govt., Value/CARD Value as on the date of registration of such plot shall be paid”.

(iii) Conversion Charges: 

It means Land Use Conversion Charges. But, this will falle in two broad categories.

Category 1: The layout/plot falls in the Zonal Plan of Urban Development Authority in residential zones. 

In such a case, no land use conversion charades need to be paid as the new G.O.Ms. No. 135 clearly provides that the LRS regularization charges include NALA charges also and no separate NALA charges shall be paid.

Category 2: The layout/plot falls in the Zonal Plan of Urban Development Authority in other zones.

The rule No. 7 provides that where an application is received in a site that is contrary to the land use stipulated in the statutory plan (zonal plan/Master plan), the competent authority shall have the power of approving the case except those specified in rule 5 above by levying the necessary conversion charges. 

The rule No. 5 provides that:

(a) No Layout / development activity shall be allowed in the bed of Water bodies like River or Nala, and in the Full Tank Level (FTL) of any Lake, Pond, Cheruvu or Kunta and in Shikam lands. 

(b) The above Water Bodies and Courses shall be maintained as recreational/Green Buffer Zone, and no Layout development activity other than recreational use shall be carried out within:- 

(i) 30 meters from the boundary of River Course/ Lakes of area of 10 Hectares and above; 

(ii) 9 meters from the boundary of Lakes /Kuntas/Shikam lands of area less than10 Hectares; 

(iii) 9 meters from the boundaries of Canal, Vagu, etc. 

(iv) 2 meters from the defined boundary of Nala 

(c) Unless and otherwise stated, the area and the Full Tank Level (FTL) of a Lake/Kunta shall be reckoned as per the Master Plan/Revenue Records/Irrigation records. 

(d) Unless and otherwise specified in the Master Plan/Zonal Development Plan,

(i) In the cases referred in clause (b) above, in addition to development of recreational/green belt along the foreshores, a ring road or promenade of minimum 12 meters width may be developed, wherever feasible. 

(ii)The above greenery/landscaping and development shall conform to the guidelines and provisions of the National Building Code of India. 

(e) For layout development activity within the restricted zone near the Airport or within 500 meters distance from the boundary of Defense areas/ Military establishments, necessary clearance from the concerned Airport Authority/ Defense Authority shall be obtained. 

(f) In case of sites in the vicinity of oil/gas pipelines, clear distance and other stipulations of the respective authority shall be complied with. 

(g) For areas covered under G.O.Ms.No.111 M.A & U.D Dept., dated 8.3.1996 (protection of Catchment area of Osmansagar and Himayatsagar lakes), apart from the provisions of statutory Master Plan of HMDA/ HADA, the restrictions on layout and development activity imposed in the said Government orders would be applicable. 

(h) No approval shall be considered in sites which are earmarked for Industrial / manufacturing Use Zone(viz.TSIIC Industrial Estates / lands 4 allotted by the Government for industrial purpose) /Recreational Use Zone/Water Body/Open space use in notified Master Plans/Zonal Development Plans. 

(i) Open Spaces earmarked in any approved layout shall not be considered for regularization under these Rules. 

(j) Sites / Plots which are under legal disputes, ceiling surplus lands / Government lands / Endowment lands / Wakf lands / Shikam lands and entered in Prohibitory Register of lands maintained by Revenue Department shall not be considered for regularization under these rules. 

Subject to the above provisions, the conversion charges will depend on the development charges mentioned in the regulations, which I will explore in my later article.

One has to be very careful when considering the possibility of the conversion if the layout/plot is not in a residential zone. Because, the above rules, particularly, Rule No. 5(h) provides that  no approval shall be considered in sites which are earmarked for Industrial / manufacturing Use Zone(viz.TSIIC Industrial Estates / lands 4 allotted by the Government for industrial purpose) /Recreational Use Zone/Water Body/Open space use in notified Master Plans/Zonal Development Plans. 

So, this is a very good thing for the individual plot owner to have the conversion of the  zones in the Master plan/Development Plan and to get his/her plot regularised for building approval. Otherwise, an individual plot owner cannot afford to convert the zone in the master plan. 

Regularization of Unapproved and Illegal Layout Rules 2020 for Urban and Rural areas in the State of Telangana

The Government Telangana State has observed that there are still many unapproved and illegal layouts and such unauthorized layouts, because of their deficiencies in infrastructure puts extra pressure on the local bodies but more importantly, puts the plot owners in such layouts at great inconvenience. Such substandard and unapproved subdivisions of plots defeat the very objective of planned development and severely affects the planned extension of services and amenities by the local bodies. 

In order to ensure that planned sustainable development takes place in all such unapproved layouts, no registration of plots will be permitted henceforth in such unapproved /unauthorized/illegal layouts. In order to bring all these unplanned/ unapproved/ unauthorized layouts into the fold of planned sustainable development and to provide basic facilities in these areas and a better quality of life for the plot owners in these layouts and in the nearby areas, Government issued “Telangana Regularization of Unapproved and illegal Layout Rules, 2020“ for Regularization of Unapproved and Illegal Layouts in the State of Telangana for both rural and urban areas.

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