Naik Naveeda Nandkishor Neeta

UM4050

The state of Gujarat has introduced the Gujarat Regularization of Unauthorized Development Ordinance, 2022 in response to the growing issue of a large number of illegal constructions, which has resulted in a buildup of inventory of approximately 1.17 lakh such structures in the state.These unauthorized constructions have been thriving due to the increased demand for real estate and expansion of cities. To tackle this issue and overcome the failure of regulatory bodies in enforcing development regulations, the GRUDA has incorporated the use of impact fee. It is important to note that the GRUDA supersedes the Gujarat Development Control Regulations (GDCR) in the state of Gujarat. The purpose of the study is the assessment of the effectiveness of Impact fee as a measure of addressing negative externality on illegal constructions, which is done in two parts a. Establishing the reasons for the creation of irregular market in housing construction b. Analysing the method of addressing this and its consequences.