Reports indicate that applicants seeking building plan approvals have long been made to pay an unofficial levy described as a “party fund” (PF), collected per square foot while processing permissions.
According to the information, the collection was said to apply whether approvals were sought through the Chennai Metropolitan Development Authority or the Directorate of Town and Country Planning, with a rate cited at Rs 27 per sq ft. The practice is described as having continued for about three decades.
The report notes that the amount was earlier Rs 25 per sq ft during the AIADMK period and later rose to Rs 27 per sq ft under the DMK, with the levy increasing over time.
Following the swearing-in of the TVK government led by Vijay, officials are said to have decided that no “party fund” will be collected from any applicant going forward, and that eligible applications will be approved immediately.
The report also urges real estate stakeholders to inform homebuyers and ensure that no such payments are taken from the public so the government’s action reaches people fully.
