Realtors miffed, call it worst policy ever

Kuldip Bhatia

Ludhiana, April 24

The new policy for the regularisation of illegal/unlicensed colonies in the state of Punjab notified by the Housing and Urban Development, Punjab, on April 20, 2018, has not gone down well with realtors and property developers it seems, as they maintain that it was the worst policy ever made by any government.

Under the new policy, a four-month window has been provided to developers of illegal colonies to submit their applications with all required documents (till August 19, 2018) along with 25 per cent amount of composition fee. Another 25 per cent amount shall be payable after the scrutiny of documents (within three months) and within one month of the issue of demand notice by the competent authority. The balance 50 per cent amount would have to be paid within a year in two installments with 12 per cent interest.

While applications would be accepted from unlicensed colonies and plots/buildings in such colonies developed before the date of notification of this police (up to March 19, 2018), for the purpose of payment of composition fee, illegal colonies have been divided into three categories.

Colonies in existence for 10 years or more would pay composition fee at the rate of 0.5 per cent of the collector rate (maximum of Rs3 lakh per acre calculated on per square yard basis), those developed between four to 10 years back would be charged 2 per cent of the collector rate (maximum Rs10 lakh per acre) and colonies having come up during the last four years or less would have to pay 6 per cent of the collector rate (maximum of Rs20 lakh per acre).

For the purpose of required minimum width of roads/ streets, approach roads and parks/green belts, unauthorised colonies have been divided into four categories – those having built up area up to 25 per cent, between 25 and 50 per cent, more than 50 per cent and more than 75 per cent. Special provisions have been made for colonies having more than 75 per cent built up area and the regularisation of such colonies would be approved by two committees specially set up or this purpose for colonies located within the city limits and outside the city limits. Both committees would be headed by the Deputy Commissioner of the district concerned.

The policy has stipulated harsh penal provisions for such developers of unlicensed colonies, who fail to submit applications for regularisation within four months of the notification of the new policy. Defaulting developers would be liable to be prosecuted under the provisions of the Punjab Apartment and Property Development Act, 1995. Such colonies would not be given connections for water supply, sewerage, drainage and electricity, no sale deeds or transfer deeds would be registered, building plans would not be approved and owners could face demolition of illegal buildings.

Outrightly rejecting the new policy, president of the Punjab Coloniser and Property Dealers’ Association Kultar Singh Jogi said this was the worst regularisation policy ever made by any government till now. “The provisions for the regularisation are very harsh, charges/composition fee is too high, demand for regularisation of old colonies on as is where is basis has not been accepted and none of the poll promises made by Congress during Assembly elections have been incorporated in the policy,” he said.

Jogi apprehended that the new policy would have adverse effects on around 85 per cent of the people associated in any manner with the property business.