The building penalisation scheme, which was introduced six months ago will come to an end on Tuesday. The Greater Hyderabad Municipal Corporation has made elaborate arrangements to cope with the rush at all circles on the last day. It expects to generate more than Rs 800 crore with the scheme as over one lakh owners have already applied for the regularisation of their houses and flats in Hyderabad.

The corporation on Monday defended its move to serve notices to applicants of the old building regularisation scheme. Owners who regularised their houses in the 1998 under Building Regularisation Scheme were also asked to apply for BPS. This created an uproar among the owners, as they were being asked to pay twice.

"It might have happened in one or two cases. But it should not be blown out of its proportion. The errors are common when a big scheme is being implemented in the interest of the public," said Mr K. Dhanunjaya Reddy, additional commissioner (project and planning). Officials indicated that the scheme would not be extended further since the ample time had been given for the submission of applications under BPS.

They felt that further extension of the scheme will lead to more unauthorised constructions in the Hyderabad. The GHMC had already taken steps for the demolition of illegal structures which have come up recently. It said that it was up to builders to prove that they had constructed the flats before the BPS was introduced.

In a bid to ensure better compliance, the government has relaxed rules for the submission of applications under the scheme. Applicants can pay only 10 per cent of the fee upfront. They can pay the remaining amount within six months.

Applicants need not worry about submitting documents at the time of application. The government has given permission to submit the documents in in due course.  The government relaxed the rules ahead of determining July 15 as the final deadline for BPS.The civic body has already issued a list of phone numbers of officials to be contacted in case applicants face problems with the BPs. Municipal administration officials have also advised the heads of government institutions to apply for regularisation of government buildings. Government organisations should take initiative to apply. They are not insisting that they pay penalisation fee, GHMC officials said.

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