Punjab reduces earnest money to 1 pc on property purchase

Punjab Government today announced to reduce earnest money deposit from 10 per cent to one per cent during the purchase of properties of improvement trust and municipal corporations.
Stating this, Punjab Local Bodies minister Anil Joshi said because of high rate fixed for depositing earnest money, there has been a lukewarm response from the public toward purchase of properties of Improvement Trusts and Municipal Corporations.
Now, the local bodies department has decided to lower the amount of earnest money from 10 per cent to one per cent on the lines of urban development authorities including PUDA, GMADA and GLADA, he said.

The minister further said buyer will have to deposit only 10 per cent of the total amount instead of 25 per cent at the time of auction.
He said with these steps, the government will see rise in revenue from the purchase of properties belonging to Improvement trusts and Municipal Corporations.