To ease pressure on the real estate sector, Punjab Government has taken several policy decisions including increasing to three years, from 90 days, the period for which delay in deposit of interest during the moratorium period can be condoned.
As per the existing policy, the successful bidder of property sold through auction was mandated to deposit interest every six months during the moratorium period, and delay in deposit was allowed only up to 90 days from due date, said an official spokesperson on Sunday.
Spokesperson said that the new policy will provide for condonation of delay up to three years, subject to charging penal interest at the rate of 18 per cent per annum.
The decisions were taken the previous week during a meeting of Punjab Urban Planning and Development Authority, Department of Housing and Urban Development, chaired by Chief Minister Capt Amarinder Singh.
The meeting, while approving decrease in transfer fee charged by PUDA and other development authorities from 2.5 per cent to two per cent till March 31, 2018, also decided to do away with the system of escalation of reserve price for 10 residential schemes.
These 10 Optimum Use of Government Vacant land (OUGVl) schemes were launched at old reserve price, without the 10 per cent increase mandated for launch of a new scheme for an ongoing project, in view of the weak market sentiment.
The meeting gave ex-post facto approval to these 10 schemes, thereby providing some relief to the beleaguered reality segment in the State.
In another important initiative, the meeting approved amendment to Punjab Urban Planning and Development Authority (Employees Service) Regulations, 1999, of Junior Engineer (building), thus deleting the footnote in Schedule III which prohibited direct recruitment of JE (Buildings) — paving way for fresh recruitment in this cadre.
It was also decided at the meeting to increase the reserve prices of some institutional sites to boost the finances of the Development Authorities while keeping in mind the prevailing market scenario, the spokesperson further said.
Further, promoters of real estate projects were facing a lot of problems in the absence of any policy regarding mortgage or hypothecation of property against EDC, license Fee and other dues.
It has now been decided that promoters of real estate projects shall hypothecate property at the rate of 75 per cent of collector rates for the total amount due.
Whenever a part of the dues are deposited by the promoter, then, after fresh valuation as per current rates, the hypothecated property shall be permitted to be released. However, as a special measure during the financial year 2017-18, old valuation shall be used for the
purpose of release of property, it was decided, the spokesperson said.