Punjab gives relief for real estate sector

The Punjab government on Friday announced a six-month extension in the period of construction of real estate projects as part of its relief measures for the realty sector in the wake of "unprecedented" situation caused by coronavirus. Chief Minister Amarinder Singh announced a six-month extension in the permissible period of construction of plots or projects for all allottees, whether private or allotted by state urban authorities, either through auction or draw of lots, said a government release here.

The stimulus package applicable to both allottees and developers, is aimed at providing them with immediate relief, while arresting slowdown in the housing sector.

The relief measures are applicable to all the urban development authorities of the state, and shall be restricted to amount due from April 1 to September 30, 2020.

Notwithstanding the huge financial implications for his government, ithad decided to support the real estate sector, which had suffered major disruptions due to the pandemic.

Various representations had been received by the government on this count, he said.

Referring to the financial implications of the six -month extension in construction period, the chief minister pointed out that since development authorities annually receive non-construction fee of nearly Rs 35 crore, this particular relaxation would lead to reduction in receipt to the tune of Rs 17-18 crore for all the authorities put together.

In another relief measure, the chief minister announced that all the urban development authorities have also been directed not to charge non construction charges/extension fee/license renewal fee for the period from April 1 till September 30, 2020.

This would involve a financial implication of more than Rs 1 crore on the basis of the past averages.

As a result of this relief, all licenses under Punjab Apartmentand Property Regulation Act and permissions under policy of mega projects would be extended by six months without any charge.

The chief minister also allowed payment of instalments (including interest) of all auctioned properties due between April 1 and September 30, 2020, along with balance instalments, as equated instalments at scheme rate of interest.

No interest shall be charged on the instalment for this period, it said.