Office Order No. 21/2012
The Chennai Metropolitan Development Authority (Administration Division) issued Office Order No. 21/2012, dated 26 December 2012, to modify procedures for collecting penal interest connected with belated payment of DC, OSR, registration charges, demolition charges and parking charges. It provides a 15 day period in which no penal interest is collected on the related interest amount, sets penal interest at 12% per annum after that period, and took immediate effect.
What the office order covers
Office Order No. 21/2012, dated 26 December 2012, was issued by the Chennai Metropolitan Development Authority (Administration Division) for its Area Plans Unit and the planning permission process. It adds instructions to the procedures in Office Order No. 13/2010, dated 7 May 2010.
The instructions concern penal interest arising from belated payment of interest associated with:
- DC
- OSR charges
- Registration charges
- Demolition charges
- Parking charges
The source uses the abbreviations DC and OSR without defining them.
Payment timing and penal interest
Office Order No. 21/2012 establishes the following treatment:
- No penal interest is to be collected on the interest amount levied for belated payment when that interest is paid within 15 days from the date on which the relevant DC, OSR or other listed charge was remitted.
- If the interest payment is received after 15 days, penal interest is to be collected at 12% per annum.
- The Chennai Metropolitan Development Authority Accounts (Main) Division must calculate the interest and penal interest and collect it.
The 15 day provision relates to penal interest on the interest amount. It does not state that the original charge or the initial interest is waived.
Internal responsibilities
Office Order No. 21/2012 assigns specific responsibilities within the Chennai Metropolitan Development Authority:
- The Accounts (Main) Division must work out and collect the applicable interest or penal interest.
- Deputy Planners in the respective channels must specifically mention interest or penal interest on belated payment in their advice.
These requirements are directed at staff handling planning permission payments and related advice.
Who may be affected
Office Order No. 21/2012 may affect applicants whose planning permission charges were paid late and who consequently owe interest on DC, OSR charges, registration charges, demolition charges or parking charges. The timing of payment of that interest determines whether additional penal interest is collected.
The Chennai Metropolitan Development Authority stated that Office Order No. 21/2012 took immediate effect.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Will penal interest be charged if I pay the interest within 15 days?
No penal interest is to be collected on the interest amount if it is paid within 15 days from the date of remittance of the relevant DC, OSR or other listed charge.
What happens if the interest payment is made after 15 days?
For interest payments received after 15 days, penal interest is collected at 12% per annum.
Who calculates and collects the interest and penal interest?
The Chennai Metropolitan Development Authority Accounts (Main) Division must calculate and collect the interest or penal interest.
Does Office Order No. 21/2012 replace the earlier procedure?
The source says the instructions are issued in addition to the procedures under Office Order No. 13/2010, dated 7 May 2010. It describes them as a modification, not a complete replacement.
