No, the 25% penalty was what it used to be earlier. Now the rate has been drastically increased to 100%. That means that an owner of an illegal building, who has been paying Rs 1 lakhs every year as property tax will have to pay Rs 2 lakhs every year. so basically if you don’t have an occupation certificate, then you should find out for sure whether you’re building is authorised or not, and try to get it authorised if not. Otherwise you’ll be losing out on a lot of money.
Hey not just water and power, the property tax for these unauthorised buildings is much higher than the normal rates. I’ve heard that the property tax is 25% more than the usual for such illegal buildings. There was word of paying a penalty of 200% on the property tax, but thankfully that didn’t pan out. I think if it had, it would have been another issue, and created more problems than anything.
Yes as far as I know, Hyderabad has pretty stringent rules to tax all those illegal constructions. Number one thing, they water and electricity supply to these buildings is always charged more than normal. I think its a very innovative way of penalizing these illegal constructions. It is not as harsh as demolishing these structures, also it shows that the authorities are not totally oblivious and passive about these buildings.