New Tax make Gurgaon flats costlier

People looking to buy property in Gurgaon and Faridabad may have to fork out an extra charge'

. With Haryana deciding to levy an infrastructure augmentation charge on developers if they want to get full or partial completion certificates chances are that the same will be passed on to buyers.

The state assembly passed the Haryana Development and Regulation of Urban Areas (Amendment) Bill, 2010. Though the government maintained the measure would have no adverse impact on residents who have already bought properties, there is no stopping developers from using the law as an excuse to sell plots and flats at higher rates.

The measure is expected to raise funds that will be used by local authorities to provide much-needed facilities in NCR towns that have long suffered from poor infrastructure.

The amendment enables private developers to get full and partial completion certificates for projects. It also has a provision under which the state government can levy infrastructure augmentation charges in lieu of the waiver of the 15% cap on profit margin. Sources said even as private builders were not allowed to make more than 15% profit under the earlier provisions of the Act, the rule was hardly followed.

A senior official said, They used to fudge the balancesheet to show under 15% profit. It's the market forces and conditions that decide the property rates, and the norm set by any government is rarely adhered to.'' He added that so far, not a single developer has applied for completion certificate in Gurgaon, where maximum private development has taken place in the state, and that maintenance of infrastructure facilities is still being carried out by them.

There have been cases of people moving the court against hike in maintenance charges by developers. Now, private developers can exit a project by paying one-time payment for infrastructure augmentation,'' the official claimed. Sources said this could also benefit private developers since they will be able to avoid paying hefty annual renewal charges for keeping licences of private colonies.

But there are apprehensions that after the waiver of profit margin of developers, they might end up selling plots and flats in new areas for higher prices. For future projects, that possibility can't be ruled out,'' said a top government functionary

New Tax make Gurgaon flats costlier

By: asha bhardwaj

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