Softening the rules for purchase of properties of improvement trusts and Municipal Corporations, the Punjab Government on Wednesday announced to reduce earnest money deposit from 10 per cent to one per cent.
“Because of high rate fixed for depositing earnest money, there has been a lukewarm response from the public toward purchase of properties of Improvement Trusts and Municipal Corporations,” clarified Punjab local Bodies Minister Anil Joshi.
He said that now, the local bodies department has decided to lower the amount of earnest money from 10 per cent to one per cent on the lines of urban development authorities including Punjab Urban Development Authority (PUDA), Greater Mohali Area Development Authority (GMADA) and Greater ludhiana Area Development Authority (GlADA).
“Buyer will have to deposit only 10 per cent of the total amount instead of 25 per cent at the time of auction,” he said. With this, “the Government will see rise in revenue from the purchase of properties belonging to Improvement trusts and Municipal Corporations like multiplex and hotels”.