Realising that transfer fee for plots in Sectors 81, 88 and 89, Aerocity and Eco City (Mullanpur) had been increased in violation of rules, the Greater Mohali Area Development Authority (GMADA) on Wednesday rolled back its decision.
Now, GMADA will continue to charge 2.5% with the price considered to Rs. 12,000 per square yard (the original market price), though there remains the argument that the promise was of only 1%.
For these localities, which have nearly 4,000 plots, on June 26 the GMADA had decided to charge 2.5% on Rs. 25,000 per square yard as base price. Actually, the authority had increased the base in consonance with the prevailing market price, something that it could not legally do after making a commitment in the respective realty scheme brochures.
As a result, the transfer fee - to be paid by buyer when seeking transfer of the property deed in his/her name - had gone up from Rs. 1.5 lakh to Rs. 3.12 lakh for a 500-sq yard plot. On Wednesday, GMADA chief administrator AK Sinha confirmed the rollback: "We had got representations against the hike from property dealers, farmers and other organisations."
But citing the law again, form SAS Nagar councillor NK Marwaha stressed, "Conditions of the brochure cannot be changed to the disadvantage of the prospective buyers without their consent.
Though the GMADA had earlier decided to charge 2.5% on the original allotment price, the brochure said 1%." This argument means the rollback isn't enough either; the rate enhancement from 1% to 2.5% had been done last year.
But realtors still welcomed the move. Chairman of the Mohali Property Consultants' Association (MPCA), Shailander Anand, said, "Thankfully GMADA has given some respite to people. The current slump in the region's property market has severely hit business. There are virtually no buyers anyway."