Admn moves to reduce penalty charges

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, January 23

In a step which will provide a major relief to owners and occupiers of properties, the Administration has decided to amend the Capital of Punjab Development Act, 1952, to reduce the penalty charges being imposed by the Estate Office for misuse and violations in buildings.

Sources said the process for an amendment to the Act had been started on the directions of the Ministry of Home Affairs (MHA).

At present, the Administration is charging a penalty of Rs 500 per sq ft for misuse and violations, which has been opposed by traders and property owners.

Under the new proposal, the Administration has proposed to charge a penalty of 0.75 per cent of the collector rate per sq yard per month applicable in case of misuse and violations in buildings in the non-permitted category and 0.5 per cent of the collector rate per sq yard per month applicable in case of misuse/violations in buildings beyond the permitted coverage.

The Administration has invited objections and suggestions from the public within 30 days. An officer of the Administration said after getting suggestions, the final recommendations would be sent to the MHA for getting the Act amended. The Estate Office had increased the penalty for misuse and violations in 2007 from Rs 20 to Rs 500 per sq feet per month for the area being misused by the occupier under the Estate Office Rules-2007.

The Administration started sending notices under the new rules, which created panic among property owners as the penalty amount came to crores in many cases. The decision has been opposed by traders, industrialists and residents since then. Associations of traders have been asking the Administration to roll back the heavy penalty being charged for misuse and building violations.