Punjab government on Wednesday relaxed norms for purchasing properties of Municipal Corporation and Improvement Trust by reducing the earnest money from 10 percent to 1 percent.
Punjab Local Bodies minister Anil Joshi said that the state government had provided a big relief to general public by relaxing the norms regarding the earnest money that is needed to purchase these properties.
Joshi said that the state government was receiving a lukewarm response from the public for the purchase of Properties of Improvement trusts and Municipal Corporations as the amount of earnest money required to be deposited was as high as 10 percent. “Now the local bodies department has decided to lower the amount of earnest money from 10 percent to 1 percent on lines of PUDA, GMADA and GLADA,” Joshi said.
He said that further the state government had given further respite to purchaser as now, one had to to deposit only 10 percent of the total amount instead of 25 percent at the time of compellation of auction.
He expressed hope that with these positive initiatives the state government would fetch good amount of revenue from the purchase of properties belonging to Improvement trusts and Municipal Corporations like Multiplex and Hotels.