Realty Seeks Friendly Government Policies in Punjab

Real estate in Punjab has failed to come out of the long-drawn slump and realtors feel the state government has not done enough to incentivize property business with its unfriendly’ policies. The issue will be taken up with union finance minister Arun Jaitley during his visit to Amritsar on Tuesday by associations of property dealers from the state.

Among the long list of relaxation sought from the government is the implementation of the proposal to set up separate counters for issuance of no objection certificates (NOCs) for unauthorized colonies, immediate notification of the promised cut in registration fee and lack of awareness about heavy penalty for cash property transactions.

“Property transactions in the state have come to a halt due to the harsh policies put in place by the government in recent times. Where there are no takers in the market, people who were investing in real estate have stopped doing so. An emergency meeting of property dealers from different regions was held on Monday to discuss the issues,” said Punjab Majha Zone Property Dealers Association president Sanjeev Rampal.

Waiver of registration fee

The decision to slash registration fee from 2% to 0.50% has not been notified so far even though it was touted as a big relief for those planning to sell property. As per the proposal, it was to be adjustable at the time of executing the sale deed. On all other power of attorneys, a stamp duty of Rs 2,000 will be levied.

Higher registration fee

“The state government has been hiking stamp duty and at 11%, it is much higher than other states. Recently, 1 % infrastructure development (ID) was added to it. Earlier, in 2012 too, 1 % social infrastructure cess was imposed in the state. It has made purchase of property costlier for people. Besides, even as the state government implemented the decision to impose ID fee with immediate effect on property transfer, incentives like fee waiver are being delayed,” said Rakesh Goyal, a property dealer from Amritsar.

Woes of unauthorized colonies

For the convenience of those living in the state’s 8,000 unauthorised colonies, it was declared that the civic bodies will put up special counters but this has not been done. Besides, it was also decided that the amount collected by way of issuing the NOCs will be used on development of the colonies but this too is yet to be done.

Higher collector rate

Even though the state government has recently brought down collector rates in various districts by up to 35% after forming a committee to rationalize it, property consultants are seeking further cut as a way to boost real estate. “There is no logic behind the 35% cut in Bathinda and mere 5% slash in Mohali,” claimed Rampal.

Penalty for cash payment

The Centre has decided to impose high penalty on those making cash payment of more than Rs 20,000 for purchase of property under section 269 SS but the state government has not made any attempt to make the general public aware about it.

Official speak

An official said the decision to bring down stamp duty will be notified shortly after the next cabinet meeting and the collector rates in the state were revised after taking feedback from property dealers from across the state. Punjab local bodies minister Anil Joshi was not available for comments.