Chandigarh, September 3: To revive the real estate sector, Punjab government has decided to increase in period for which delay in deposit of interest during the moratorium period can be condoned from 90 days to 3 years.

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 revealed

The decisions were taken at a meeting of Punjab Urban Planning & Development Authority, Department of Housing and Urban Development, chaired by Chief Minister Captain Amarinder Singh.

According to an official spokesperson, 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. The new policy will provide for condonation of delay up to three years, subject to charging penal interest @ 18% per annum.

The meeting, while approving decrease in transfer fee charged by PUDA and other development Authorities from 2.5% to 2% till March 31, 2018, also decided to do away with the system of escalation of reserve price for 10 residential schemes. These 10 OUGVL schemes were launched at old reserve price, without the 10% 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 foot note in Schedule III which prohibited direct recruitment of JE (Buildings). This will pave the 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 revealed

Further, promoters of real estate projects were facing a lot of problems in the absence of any policy regarding Mortgage/Hypothecation of property against EDC, License Fee & other dues). It has now been decided that promoters of real estate projects shall hypothecate property @75% 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 FY2017-18, old valuation shall be used for the purpose of release of property, it was decided.