Amarinder announces relief measures for real estate sector
Gives six-month extension in time period for construction of plots/projects; no non-construction charges, extension fee, licence renewal fee for the period between April 1 and Sept 30Updated: May 22, 2020 23:09 IST
Punjab chief minister Capt Amarinder Singh on Friday announced a slow of relief measures for the real estate sector, including six-month extension in the permissible period for construction of plots and projects for all allottees, whether private or allotted by state urban authorities.
The relief measures are applicable to all urban development authorities in the state, and will be restricted to the amount due from April 1, 2020 to September 30, 2020.
In a statement, the chief minister said that notwithstanding the huge financial implications for his government, it has been decided to support the real estate sector, which has suffered major disruptions due to the Covid-19 crisis.
Referring to the financial implications of the six-month extension in construction period, the CM said that since development authorities annually receive non-construction fee of nearly Rs 35 crore, this particular relaxation would lead to reduction in receipt to the tune of Rs 17-18 crore for all authorities put together.
Amarinder also announced that all urban development authorities have been directed not to charge non-construction charges, extension fee, licence renewal fee for the period between April 1 and September 30.
PAYMENT OF INSTALMENTS
The government has also allowed payment of instalments (including interest) of all auctioned properties due between April 1 and September 30, along with the remaining instalments, as equated instalments at the scheme’s rate of interest.
Also, no interest will be charged on the instalments due between April 1 and September 30, and thereafter, the scheme interest will be charged on the amount due.
“This particular relief can also be availed for post-dated cheques of amounts deposited against external development charges, licence fee, social infrastructure fund etc, under amnesty policy of November 28, 2019 payable up to September 15, 2020 (including those which were due on March 31, 2020,” said a government spokesperson.
ALLOWS PHASING OF EDC PAYMENT
Amarinder also gave concurrence to the proposal mooted by the Greater Mohali Area Development Authority (GMADA) to allow phasing in payment of external development charge (EDC) as per the release of layout plans. However, rate of EDC payable will be applicable at the time of approval of layout plans.
The spokesperson said, “Given the criticality and urgency of the situation, the chief minister, as chairman of the development authorities, has decided to announce immediate relief measures for six months, thus giving time to the authorities to come out with comprehensive long-term package. Post-facto approval of all the decisions announced by the chief minister would be taken by the authorities concerned at the earliest.”
These urgent relief measures are in addition to certain incentives decided by the housing and urban development ministry, including extension by six months in the moratorium in payment of instalments in case of auctioned properties, the spokesperson said.
The ministry has also decided that share of ownership can be transferred by urban development authorities in case of auctioned sites on proportionate payment plus 15%, subject to minimum transfer of ownership of 20% at one instance. Permission to sell specific built-up area marked on the layout plan can be given to developers thereafter, in the same proportion subject to having obtained the occupation certificate for such units.