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Building Permit Fund Levy to Be Stopped

May 15 2026

Building Permit Fund Levy to Be Stopped

Reports indicate that applicants seeking approval for building plans have, for several years, been required to pay an unofficial levy commonly referred to as a “party fund.” This amount was allegedly collected during the processing of permissions and calculated on a per square foot basis. According to available information, the collection was said to apply regardless of whether approvals were sought through metropolitan planning authorities or town and country planning departments. The rate most often cited was Rs 27 per square foot, and the practice is described as having continued for nearly three decades. The report states that the levy was initially collected at a lower rate of Rs 25 per square foot in earlier years and was later increased to Rs 27 per square foot, with the amount gradually rising over time. Applicants reportedly had little choice but to pay the sum in order to avoid delays in approval. Following a recent change in administration, officials are said to have decided to completely discontinue the collection of any such unofficial levy. It has been indicated that no “party fund” or similar payment will be demanded from applicants going forward, and that all eligible building plan applications will be processed and approved without delay, strictly as per rules. The report further urges real estate developers, promoters, and intermediaries to clearly inform prospective homebuyers and applicants about this decision. Stakeholders are asked to ensure that no extra or unofficial payments are collected from the public, so that the government’s action is effectively implemented and its benefits fully reach citizens.

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