AMC Officials Face Allegations of Impact Fee Irregularities in Regularisation of Houses on Government Land

AMC officials face allegations of illegally collecting impact fees to regularise houses built on government land in Ahmedabad, raising concerns over GRUDA Act misuse.

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Officials of the Ahmedabad Municipal Corporation (AMC) have come under scrutiny following allegations that impact fees were illegally collected to regularise two houses constructed on government-owned land in the Ghatlodia ward. Members of a local co-operative housing society have accused civic officials of misrepresentation, collusion, and procedural violations under the Gujarat Regularisation of Unauthorised Development Act, 2022 (GRUDA Act).

The allegations have been raised by members of Devmandir Co-operative Housing Society, who claim that AMC officials from the North West Zone regularised two unauthorised structures by falsely linking them to the society’s land records. According to the complainants, the houses were not built on society-owned land but on land reserved for government deduction, making the regularisation unlawful.

Appeal Filed Under GRUDA Act

On December 22, 2024, society member Natwarlal Panchal and eight other members of society filed an appeal before the Appellate Authority in Gandhinagar for cancellation of the approved impact fee application filed in May 2024 through an application filed under the GRUDA Act 2022.

According to the petition, the impact fees were charged for House No. 67 and House No. 68 standing on Final Plot No. 59 in Town Planning Scheme No. 1 in Chandlodia, falling under the Ghatlodia ward. But in the regularisation order, it is mentioned that it relates to Devmandir Co-operative Housing Society and Final Plot No. 60, contrary to that submitted by the Society.Discrepancies in Land Records

According to the society, a detailed examination of revenue and town planning records shows that the two houses are not located within the society’s land parcel, which measures 8,114 square metres and corresponds to Final Plot No. 60. Members allege that the incorrect referencing of their society’s name and plot number was used to legitimise constructions that were otherwise ineligible for regularisation.

The complaint further states that the land on which the two houses were built was allotted to the government, with the collector’s rights clearly indicated in Form F, a statutory land record document. Under such circumstances, the society argues, private residential construction and subsequent regularisation through impact fees is legally untenable.

“A crucial point is that the land belongs to the government, and the collector’s rights are clearly recorded. Regularising private houses on such land is illegal and raises serious concerns about the role of officials involved,” the complaint notes as per ET Realty.

Demand for Action Against Officials

Members of society have demanded that exemplary measures be taken against three other public servants from the office of the North West Zone of AMC for allegedly abetting in this irregular régularization of these unauthorized developments. They argued that when these irregular developments are allowing construction, it is counter to the purpose of the GRUDA Act, but rather illegal construction of buildings on government land.

Five hearings have taken place in relation to the case by the appellate authority until now, with the last appellate hearing held on December 25, 2025. The case is still pending, and no statement from the AMC has been released.

The case has also triggered concerns about implementing the GRUDA Act as well as monitoring requirements in relation to imposing impact fees. The way unauthorized structures are regularized, especially on government land, has been shown to create a disturbing trend that would reduce public faith in the governance of cities.

With the unfolding of the appeal, it can be anticipated that it will have implications for not only the parties in the case but also for the manner in which unauthorised developments are examined for regularisation in the city of Ahmedabad.


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