The Builders’ Association of India (BAI) will be writing to chief minister M K Stalin requesting him to reduce the hike in registration fees of power of attorney to sell immovable property and construction agreement charges that came into effect from July 10.
The association members feel that such a revision can have adverse consequences on the real estate sector that is witnessing a boom in the city and state. They fear it may trigger a decline in property transactions and related industries.
The registration fees for power of attorney to non-family members has been changed from the flat 10,000 to 1% of the property’s market value. “There will be a huge burden on the promoter/builder who gets the power from the landlord for a shorter period, six months to one year. This should either be reduced to old rates or marginally increased but not on a percentage basis,” said A N Balaji, chairman, Builders Association of India.
Association members also pointed out that the registration fees of construction agreements have also been hiked.
The existing registration fee was 1% on the value of construction or cost of construction, whichever is high. It is raised to 3% now.
Builders Association of India committee chairman (municipal and DTCP) S Ramaprabhu, said that builders are already burdened by the loans taken for the projects.
“This hike will add to our woes, and many will be discouraged from investing in this sector,” he said.