Nagpur’s real estate and construction sector may continue to face financial pressure as the Maharashtra Urban Development Department has rejected Nagpur Municipal Corporation’s proposal to withdraw the 100% development fee hike.

The decision means that the increased development charges will remain applicable for builders, developers and property owners seeking approvals for construction and real estate-related projects in the city.

According to the information, NMC had requested permission to cancel the earlier decision of doubling development fees. However, the state government has maintained that the previous resolution will continue, citing the need for infrastructure development and public interest.

A part of the collected development fee is expected to support urban infrastructure and transport-related projects, including Nagpur Metro development. Officials believe that the increased charges will help strengthen future-ready infrastructure in the city.

However, builders and property owners have raised concerns that the hike may increase project costs and could make homes costlier for buyers. Developers may also face additional financial pressure due to the revised charges.

The Urban Development Department has also directed that complete applications for construction approvals should be cleared within 30 days. While the decision may impact the realty sector in the short term, authorities believe it will support Nagpur’s long-term urban growth.