Increment expected in property purchase
The decision of the Ministry of Local Bodies to exempt charging the Change of Land Use (CLU) fee within municipal limits has raised the hope of some revival of the now dormant real estate business in the state. Minister for Local Bodies, Anil Joshi has in a recent announcement said the CLU fee has been exempted in case for development of Industry, hotels and hospitals within municipal limits of the city.
He also announced reduction in rates of External Development Charges, licence fee, and CLU charges for housing and group housing schemes by 50 percent of the existing rates. There would be no changes in the fee regarding multiplexes, marriage palaces, petrol pumps, multi-media centres, societies, warehouses and storehouses.
While making the announcement the minister said though some revenue might be lost, but overall the government would be a gainer as the fee exemption would lead to growth in sale and purchase of property and augment the real estate business also.
This decision might help in levelling the growth in the sale and purchase of property especially for commercial purpose.
Source: The Tribune
Change of land use, External development charges, group housing schemes, marriage palaces, Ministry of Local Bodies, multi-media centres, Multiplexes, petrol pumps, Real estate business, societies, warehouses
