Punjab Housing Dept Reduces Non-construction Fee by 50%

In a relief to allottees who could not start construction over their plots in the stipulated time, the department of housing and urban development, Punjab, has halved non-construction fee. Besides, the earlier provision of cal

BY Realty Plus
Published - Thursday, 03 Jun, 2021

Punjab Housing Dept Reduces Non-construction Fee by 50%

In a relief to allottees who could not start construction over their plots in the stipulated time, the department of housing and urban development, Punjab, has halved non-construction fee. Besides, the earlier provision of calculating penalty half yearly in such cases has been replaced with monthly mode. The decision is applicable to properties, including residential, commercial, institutional, industrial, housing societies, private builders etc under Punjab Urban Development Authority (PUDA), Greater Mohali Area Development Authority (GMADA) and other special development authorities. The reduced non-construction charges have come into effect from April 16, 2021, and for period before April 16, 2021, old charges will be applicable. An amendment to this effect has been made in the Punjab Regional and Town Planning and Development Act, 1995. Department said it was deliberated that the non-construction fee being charged from the allottees was high and due to this, those who were not able to start construction, were compelled to resale the property. In case of residential and other allotted properties except commercial sites, the allottees would be required to pay the non-construction fee on the prevalent reserved price of plots or sites in the vicinity and no interest will be charged. However, in case of commercial sites, the fee would be calculated on auctioned or allotment price. Delayed payment in such cases, would attract compounded interest at the rate of 7% per annum.