Services from Rajuk: Almost nothing moves without speed money

Real estate developers have to pay up to Tk 2 crore speed money to get building approval from Rajuk for a housing project, says a TIB report.

The government-set rate for this service is Tk 3.65 lakh maximum, excluding 15 percent VAT, it said.

For getting approval for a building above 10 storeys, developers spend up to Tk 40 lakh extra.

Besides, they are charged Tk 10 lakh extra for approval of a 10-storey building, while an individual pays up to Tk 4.5 lakh for the same, said the report based on a research conducted from November 2018 to December 2019.

The usual fees amount to Tk 83,000 plus 15 percent VAT.

For obtaining a land use clearance, developers pay up to Tk 10 lakh and an individual spends up to Tk 80,000 extra, the study found. 

The actual fee is Tk 1,000 and 15 percent VAT.

Findings of the study “Rajdhani Unnayan Kartripakkha (Rajuk): Challenge of Good Governance and the Way Forward” were disclosed at a press conference at Transparency International Bangladesh’s Dhanmondi office yesterday.

As errors were made during the formation of Rajuk, exploitation of loopholes, mismanagement, corruption, irregularities, and lack of transparency and accountability have been institutionalised, said TIB Executive Director Iftekharuzzaman while addressing the press conference.

He said besides giving mandate to formulate plans and implement development activities, Rajuk was also given the job of a regulatory body.

As a result, there has been a “conflict of interest” in Rajuk since its inception, he said.

Such conflict helped grow the culture of irregularities, corruption, and mismanagement within the government organisation, “turning the protector into a predator”, he added.

Vested groups take the advantage and do whatever they want, he added.

Iftekharuzzaman said as the housing sector became profitable, Rajuk maintained links with influential groups and served their needs.

Rajuk also turned into a profit-making body, he said.

“In doing so, one of its core mandates, the regulatory role, has been overlooked,” he said, adding that such profit-seeking role of Rajuk contradicted its regulatory role.

He suggested that Rajuk be relieved from its regulatory role, and an independent body be formed to monitor Rajuk’s activities.

The research was mainly based on interviews of different stakeholders, including service-seekers, related government officials, and experts.

It also relied on secondary data sources such as related laws and research reports.

In 2017-18 fiscal year, Rajuk issued 6,011 land use clearances and approved designs of 6,698 buildings, the TIB report mentioned.

The number was 3,632 and 3,837 respectively in 2014-15 fiscal year.

The report also mentioned that two members of the parliamentary standing committee on the housing and public works ministry are owners of construction firms. It created a “conflict of interest”.

There is a scope for making complaints against dishonest Rajuk employees. But it is alleged that proper action against them is not taken, it said.

Within the Rajuk, Tk 2 lakh to 2.5 lakh is needed in bribes for a transfer and up to Tk 1 crore for a promotion, the TIB study found.

There is also an allegation of using political influence in transfers or promotions.

For land use clearance and building approval, bribes are taken through a tripartite “agreement” involving Rajuk officials, brokers, and service-seekers, it added.

The “agreed” amount is set based on various issues, like the size of land, location and use of land, type of service-seeker, and number of land owners, said the report.

Although there is a deadline for issuing land use clearances or building approvals, such timeframe is not always maintained.

In some cases, it even takes two to three years for getting such services, the report added.

In case of Rajuk’s own housing projects, money had been taken illegally at different stages, during plot distribution, plot handover, and handover of flats’ keys, from the plot owners, said the report.

The amount at such stages ranged from Tk 5,000 to Tk 1 lakh.

About the Detailed Area Plan (DAP), the TIB report said there were allegations of direct and indirect influence of real estate companies in the reviews of the DAP.

In its 14-point recommendation, TIB called upon the authorities to preserve documents digitally and formulate a detailed guideline for online application process regarding land use clearances and building approvals.