CMDA, DTCP owe Rs 225 crore to urban bodies

A CAG report has revealed that planning authorities such as Chennai Metropolitan Development Authority (CMDA) and Directorate of Town and Country Planning (DTCP) owe more than Rs 225 crore to urban local bodies as they retained OSR (Open Space Regulation) charges.

“Audit scrutiny of the transfer of OSR and development charges to the urban local bodies revealed that during the period from 2015-16 to 2019-20, as against an amount of Rs 351.81 crore, only Rs 126 crore has been transferred (by CMDA). The balance amount of Rs 225.28 crore was retained by CMDA and DTCP till date (September 2021), which denied the ULBs of their rightful share of funds and which could have been utilised for the development of infrastructure facilities in the urban locality,” the report said.

As per the third state finance commission recommendation, 75 per cent of the development charges and open space regulation charges should be transferred to the respective ULBs, for the development of the area and the same was accepted by the government.

During the period, the planning authorities collected Rs 469.07 crore as development charges and open space regulation charges. The report recommended the government formulate a mechanism for transferring the due share of OSR charges and development charges to the ULBs in a timely manner. It added that the third state finance commission recommended that CMDA and DTCP be brought under Municipal Administration Dept.