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Builders’ plea to the CM on registration fee hike
The registration charges and stamp duty and appealed to him to implement the Hyderabad model. They made an appeal following a decision of the Government of Chennai to increase the registration charges of the agreements by 1% to 3%. The registration fee of the contracts which is limited to Rs 10,000 now has been increased to 1% of the market value of the property. However, the CREDAI wants the government to limit the fee between Rs 30,000-50,000.
Sale agreement, agreement to develop property jointly, registration of the general power of attorney should be on the lines of the Hyderabad model, as it proved to be effective in protecting interests of the all stakeholders, the CREDAI felt. Developers and private equity investors and banks will get adequate protection from the problems to be posed by property owners, it said adding that at the same time the government would be able to get good amount of revenue.
The mutually-beneficial arrangement would not only rationalize the registration process but also lends transparency to deals and promotes safe real estate practices. Therefore, for achieving stability of real estate in Tamil Nadu and its development, it is advocating implementation of the Hyderabad model. Increasing the registration fees and stamp duty would put burden on the real estate sector and burn hole in the pockets of the customers to the tune of Rs 1 lakh, he said.
