Tribune News Service
Mohali, May 31
The Punjab Ministry of Housing and Urban Development has announced that it will cut the penalty for non-construction work in half – a move it hopes would encourage people to start building their land.
A non-building fee is a penalty imposed by housing authorities for failing to start building land developed by the government and development agencies within a certain period of time.
The department also replaced its previous semi-annual method of calculating these penalties with a monthly one. She hopes these new changes would encourage people who were forced to sell their properties due to heavy fines to start building.
These new changes apply to properties with residential, commercial, institutional and industrial land, as well as to housing associations and private construction companies. A department spokesman said a change was made to the Punjab Regional and Town Planning and Development Act of 1995.
Owners of residential and other real estate must pay the penalty for the prevailing minimum price of land or land nearby without interest. However, for commercial locations, this penalty would be calculated based on the auctioned or allotment price.
Any late payment would result in compound interest of 7 percent per year.
The new penalties will come into effect retrospectively from April 16, 2021. Old fees will continue to apply before that date, the spokesman said.