BHUBANESWAR: The Confederation of Real Estate Developers of India (CREDAI), Odisha chapter, on Wednesday instructed the state government to cut the massive fees for issuance and cancellation of power of attorney (POA) of a land to do trade for joint development of real property projects.
Now the state fees seven in line with cent on market value of land right through shifting and cancellation of POA. The real property frame demanded the government to take one in line with cent or Rs 50,000 (whichever is upper) as a substitute of charging a staggering seven in line with cent. It also suggested the government to keep a nominal rate or Rs 200 for cancellation of POA of a land.
"I along with a land owner signed a development agreement to make a real estate project on a piece of land with a market value of Rs 1 crore. So I took power of attorney from the land owner by paying Rs 7 lakh. If I want to cancel the POA, I have to again pay Rs 7 lakh for cancellation which is a great loss for me. Before doing any business I have to pay Rs 14 lakh for a Rs 1 crore project. It is unfortunate," said D S Tripathy, CREDAI chairman.
He said different states have provisions for a separate class for development agreement cum basic power of attorney where fees are very nominal. Some states take just one in line with cent as registration and cancellation fees, he added.
"These unreasonable charges shoot up prices of houses. This has forced developers to sell homes at high rates. By denying the level playing field to developers, the authorities have not allowed us to compete with prominent developers from neighboring states," said Binay Krishna Das, president of CREDAI Odisha.
He said the state should scale back the charges to facilitate small and medium elegance entrepreneurs to gratifying the dreams of millions of affordable house seekers. It may also lend a hand the government to earn 3 to 4 instances more earnings on the time of registration as property values transform upper by 5 to six instances after development.
Revenue secretary Chandra Shekhar Kumar said they will speak about at the issue once you have any written complaint from the true property builders. "According to the Stamp Act, the fee is collected from the real estate developers. If they want change, they have to approach the government by submitting a written complaint," he added.
Now the state fees seven in line with cent on market value of land right through shifting and cancellation of POA. The real property frame demanded the government to take one in line with cent or Rs 50,000 (whichever is upper) as a substitute of charging a staggering seven in line with cent. It also suggested the government to keep a nominal rate or Rs 200 for cancellation of POA of a land.
"I along with a land owner signed a development agreement to make a real estate project on a piece of land with a market value of Rs 1 crore. So I took power of attorney from the land owner by paying Rs 7 lakh. If I want to cancel the POA, I have to again pay Rs 7 lakh for cancellation which is a great loss for me. Before doing any business I have to pay Rs 14 lakh for a Rs 1 crore project. It is unfortunate," said D S Tripathy, CREDAI chairman.
He said different states have provisions for a separate class for development agreement cum basic power of attorney where fees are very nominal. Some states take just one in line with cent as registration and cancellation fees, he added.
"These unreasonable charges shoot up prices of houses. This has forced developers to sell homes at high rates. By denying the level playing field to developers, the authorities have not allowed us to compete with prominent developers from neighboring states," said Binay Krishna Das, president of CREDAI Odisha.
He said the state should scale back the charges to facilitate small and medium elegance entrepreneurs to gratifying the dreams of millions of affordable house seekers. It may also lend a hand the government to earn 3 to 4 instances more earnings on the time of registration as property values transform upper by 5 to six instances after development.
Revenue secretary Chandra Shekhar Kumar said they will speak about at the issue once you have any written complaint from the true property builders. "According to the Stamp Act, the fee is collected from the real estate developers. If they want change, they have to approach the government by submitting a written complaint," he added.
CREDAI demands cut in charges of transferring power of attorney of land
![CREDAI demands cut in charges of transferring power of attorney of land]()
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February 01, 2018
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