Indian Express 21.06.2010
Punjab to allow construction on vacant plots for ‘12 more years’
Express News Service Tags : government, land Posted: Mon Jun 21 2010, 00:24 hrs
Mohali: In a major policy decision, the Punjab government has decided to allow construction on vacant plots in Mohali and the rest of the state within 15 years from the date of possession.So far, the allottees were required to construct on the plot within three years from the date of possession, failing which the Estate Officer was required to resume the plots in accordance with provisions of Section 45 of the Punjab Regional and Town Planning and Development Act, 1995.
Now, with an amendment in the Punjab Regional and Town Planning and Development (General) Rules, 1995, the Department of Housing and Urban Development has empowered Estate Officers of allotment agencies to extend the three-year period up to 15 years.
This will be done on payment of a nominal fee and if the Estate Officer is convinced that the building could not be completed due to reasons beyond the control of the allottee.
In a notification issued under Section 43 of the Act , Dr S S Sandhu Secretary, Housing and Urban Development, has prescribed the fee to grant extension to allottees of residential, commercial and industrial plots. Two per cent of the allotment or auction price will be annually charged for extension of five years after expiry of the stipulated three-year period; three per cent per annum for the ninth and tenth year; 3.5 per cent for the 11th and 12th year; and four per cent for the 13th, 14th and 15th year.
The extension fee has to be paid within 30 days from the date of the extension order. But on request, Chief Administrator of the allottment agency can extend the payment period up to six months.
Also, the allottee would be required to pay the annual extension fee every six months.
But no fee would be charged to extend the construction period for land allotted to government departments or public sector undertakings of the state government.
Further, the Estate Officers have been empowered to extend the construction period for another one year in cases where the 15-year period has lapsed — this would be done on payment of a fee to be determined by the government.
For serving soldiers, officers of the Armed Forces posted at non-family stations, legal heirs of deceased personnel, war widows and other such cases, the extension fee could be waived after due consideration by the Chief Administrator — this would be done only in case of residential plots.
Also, charitable institutions (except educational institutes and hospitals) exempt from income tax are entitled to get waiver of up to eight per cent of the total extension fee.
