Abstract of the discussion paper presented before the Members of Institution of Valuers, UP State

Centre on 27.04.2008by Prof. Subodh Shankar, Professor & Head, Department of Architecture,
Integral University, Lucknow and Retd. Chief Architect, UP Housing & Dev. Board

Combating the menace of unauthorized constructions through Index

based Valuation of properties
Dear Valuer Friends,
It is indeed a great pleasure for me to be with you to interact on the burning topic of
unauthorized constructions and its effect on the valuation of properties. Before
deliberating on this subject I would like to dwell upon the historical background and
importance of building regulations leading to orderly constructions.
As is already known to all of you, both town planning and architecture have been
practiced throughout the world since ages. During Indus Valley civilization cities
like Harappa, Mohenjo-daro,Lothal etc. were extremely well planned and they had
followed well-defined planning laws. The streets were laid out in an efficient pattern,
ensuring that houses were protected from noise, odours and thieves. In addition
houses were safe guarded against floods by platforms and as an addition measure of
precaution against inundation bastions were added to the peripheral brick walls in
order to divert the currents.
The Harrapans were highly disciplined people who were very conscious of their
civic duties. The citizens kept their cities clean and also had various responsibilities.
For example, residents would ensure that the underground drains were not chocked
by the solid waste carried by private drains from the baths.
Thus, we note that during pre - historic period of civilization people were highly
conscious about orderly development but today the situation is entirely different. As
a matter of fact now a day it a rare a phenomenon to see a building built as per
prevailing bye laws. By and large people are flouting the byelaws and they feel
proud in telling their friends that they have flouted such and such rules. This
situation is indeed leading to most chaotic conditions in all of our towns- be it New
Delhi, Mumbai, Bangalore or Lucknow. The citizens are not able to safely walk on
the streets, are not able to receive sufficient water to drink and worst of all they are
not able to get fresh air to breathe.
But who is responsible for this state of affairs? Is it the government alone? Or we
our- selves are not undertaking the responsibilities expected out of a responsible
citizen? In my opinion answer does not lie on any single entity. In fact flouting of
the rules- both by the government as well as by the general public has become the
order of the day.

Here, I would like to point out that for years together this topic has been discussed at
various forums of the governments, practicing architects and engineers, but situation
has become worst. In my firm opinion unless and until certain innovative measures
are devised in this field, it is just not possible to tackle this grave problem facing the
Indian society.
One innovative measure which came to my mind while coming to this place is to
link up the process of valuation with adherence to various rules, regulations and
building byelaws. Thus, if a particular property has followed the prevailing byelaws
to the fullest than it should be valued at higher rates and if not; its valuation should
keep on decreasing depending on the extent of non compliance of various rules and
regulations.
Dear Valuers, if this idea appear to have any merit in it and is prima - facially found
acceptable by professional valuers, some sort of a mechanism to provide certain
fiscal benefits to those people who are following rules and regulations could
probably be worked out and this may lead to better compliance of rules and
regulations.
Here, I would like to suggest an introduction of a Fairness Index, based on
which borrowers could avail easy loans and their loan amounts could
proportionately increase. The details of this Fairness Index could be worked
out by the Institution of Valuers.
This Index can also be used to reward law abiding citizens, by way of reducing the
tax burden in proportion to their abidance to the building byelaws. Following table
may elaborate this idea further:
Table: Property Tax Reduction based on Fairness Index

S. No.
1
2
3
4
5

Fairness Index Range

90 -100
80 - 90
70 -80
60 -70
50 -60

% Tax Reduction
25%
20%
15%
10%
05%

I would very humbly request the members of this highly responsible organization to
deliberate on this subject at a larger forum and come out with concrete as well as
practical solutions which may help law abiding citizens and at the same time
discourage unlawful constructions. I know that this great organization has always
cared for higher values in the society and will, therefore work out various innovative
strategies to combat the menace of unauthorized constructions so prevalent in the
society at present.