Durban land owner wants municipality to pay up

A Durban man who owns a chunk of land in Morningside is taking on the eThekwini municipality after it allegedly took over the vacant land illegally and built low-cost emergency housing units on it.

Shaun Naicker, 51, said he wants the city to compensate him fairly.

The emergency housing units were built by the city at the Jadhu Place informal settlement, which stretches from Overport to Morningside.

The municipality began building the dormitory-like buildings in August 2008, after thousands of people were left homeless by a fire.

Residents claim they were not consulted about the plan to build houses and were worried about their property values plummeting. Yesterday Naicker said he had found out two weeks ago that the municipality had built temporary structures on his land. He is also demanding a rates refund.

Naicker bought the 5 360m178 of land on 138 Glade Road, Morningside, in May 2007. On July 1, 2007, when the new property valuations came into effect, his property was valued at R1.850 million and his monthly rates were R5 414.50.

"I then lodged an objection on the basis that my property was originally purchased with road access, but the municipality had taken the road access away and stopped future development, allowing informal settlements in and around my property," he said.

After a second objection his property value came down to R475 000 in August 2009 and his monthly rates dropped to R1 412.

"About two weeks ago I approached an estate agent because I wanted sell the land. But when we went to view the site, I found out that the municipality had built transit camps without my knowledge or approval," he said.

Subsequently, Naicker and his estate agent met municipal housing officials. "The housing department acknowledged that they had built transit camps on my land and were willing to purchase the land for R150 000, and also consider refunding the rates... provided that I accept the offer on the table," he said.

The municipality wrote to Naicker confirming interest in acquiring his land for R150 000 for developing a settlement known as Jadhu Place.

"My estate agent then asked how the rates department put a price of R1 850 000 on the land and the housing depart-ment valued the land at R150 000, but the answer was 'we are different departments and one cannot answer for the other'," he said.

Naicker said he was renting a flat, paying university fees for one of his children and did not have money to hire a lawyer.

"I can't buy a house for R150 000 let alone pay tuition fees. I don't have a problem if the municipality wants to purchase my land and build homes for the poor. But they must give me a realistic offer because the houses located on either side of my land are worth millions."

Naicker yesterday handed a letter to the municipality requesting for his rates payments to be suspended until the matter was settled.

"Why should I pay rates when the municipality has taken it upon themselves to use my land? I will not pay millions of rands in legal costs to get what is due to me from government," he said.

Municipal treasurer Krish Kumar said: "The person who owns the land is still liable to pay rates. If the municipality builds transit camps, the housing department would have to ensure that they negotiate with the home owner, have an agreement drawn up and give the owner compensation, if compensation is applicable."

Municipal housing head Couglan Pather said the land had been chosen to provide shelter for the informal settlements.

"An offer has been made to the landowner and the matter is still under consideration. The municipality has not yet received a response from the landowner accepting or rejecting the municipality's offer."

Pather confirmed that the current municipal value as per the rates roll was R475 000 for the land.

"An independent market value is R150 000," he said.

The Mercury

Posted at 10:10AM Apr 07, 2010 by Editor in Residential  |  Comments[8]