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Section 22: Allotment and ancillary matters

Punjab Management and Transfer of Municipal Properties Rules, 2021State Rules of Punjab · 2020

(1) An applicant entitled to get a residential plot on the basis of a draw of lots/e-auction held shall be issued an allotment letter in Form ‘J’ (hereinafter referred to as e-auction the allotment letter) and such allotment shall be subject to the conditions specified therein.

An applicant entitled to get commercial property on the basis of eauction shall be issued an allotment letter in Form ‘K’ (hereinafter referred to as the allotment letter) and such allotment shall be subject to the conditions specified therein.

An applicant entitled to get a residential multi storeyed house on the basis of a draw of lots/e-auction shall be issued an allotment letter in Form ‘L’ (hereinafter referred to as the allotment letter) and such allotment shall be subject to the conditions specified therein.

(2) The Allottee shall be required to execute an agreement with the Executive Officer/Commissioner of the Municipality within a period of thirty days from the date of issue of the allotment letter, otherwise penalty at the rate of 0.1% of the total sale price, subject to a minimum of one thousand rupees per month Section 9 Section 8 PUNJAB GOVT. GAZ. (EXTRA), OCTOBER 26, 2021 (KRTK 4, 1943 SAKA) 2658 of delay shall be charged and part of a month shall be counted as complete month.

(3) (a) The Allottee may get the residential property (un-constructed), Multistoreyed Flats and commercial property(constructed or un-constructed) transferred in the name of another person(s) before paying all installments/ dues or during pendency of installments as many times as the allottee/ transferee opts by paying requisite transfer fee at the rate of 3 per cent of the allotment price of the property or the reserve price at the time of such transfer, whichever is higher, subject to the condition that such transfer fee shall not be less than the amount shown in the Table given below:- TABLE

(i) RESIDENTIAL/MULTI-STOREYED FLATS Area of plot Minimum transfer fee (in rupees) Measuring upto 150 square yards 5,000/- Measuring more than 150 square yards upto 7,500/- 200 square yards Measuring more than 200 square yards upto 10,000/- 250 square yards Measuring more than 250 square yards upto 15,000/- 300 square yards Measuring more than 300 square yards upto 20,000/- 350 square yards Measuring more than 350 square yards upto 30,000/- 400 square yards Measuring more than 400 square yards 40,000/-

(ii) COMMERCIAL Category Minimum transfer fee (in rupees) Booth/ Booth sites 40,000/- PUNJAB GOVT. GAZ. (EXTRA), OCTOBER 26, 2021 (KRTK 4, 1943 SAKA) 2659 Shop-cum-office/ shop-cum-flat or sites or any 1,00,000/-.

other such category The Transfer letter will be issued by the Executive Officer after the receipt of transfer fees.

(b) No such transfer shall be allowed after the conveyance deed has been executed.

(4) The Allottee may get the property transferred in the name of his family members (which means spouse, children and parents) by paying transfer fee as specified in the Table given below:- TABLE

(i) RESIDENTIAL/MULTI-STOREYED FLATS S. Area of plot Minimum transfer No. fee (in rupees)

1. Measuring upto 150 square yards 2,000/-

2. Measuring more than 150 square yards upto 3,000/- 200 square yards

3. Measuring more than 200 square yards upto 4,000/- 250 square yards

4. Measuring more than 250 square yards upto 5,000/- 300 square yards

5. Measuring more than 300 square yards upto 6,000/- 350 square yards

6. Measuring more than 350 square yards upto 8000/- 400 square yards

7. Measuring more than 400 square yards 10,000/-

(ii) COMMERCIAL S.No Category Minimum transfer fee in rupees)

1. Booth or booth sites 10,000/-

2. Shop-cum-office/ shop-cum-flat 30,000/- or sites or any other such category PUNJAB GOVT. GAZ. (EXTRA), OCTOBER 26, 2021 (KRTK 4, 1943 SAKA) 2660

(5) (a) The fee for addition /deletion of name of spouse, record entry, agreement, issue of transfer certificate/ no objection certificate, permission to mortgage shall be as given in the Table below:- TABLE Type of property For Addition/ Deletion of name of spouse and for other cases record entry, agreement (in rupees) Residential Property 5,000/- Commercial Property 10,000/-

(b) Such certificate (s) may be issued by the Executive Officer of the Municipality after receipt of requisite fee.

(c) No fee is to be charged to correct any clerical error in record, which occurred at the level of the Municipality.

(6) Transfer of property in ‘Death case’.- In case of death of original Allottee or a person in whose name the property had been validity transferred, the transfer shall be made on production of following documents, as may be relevant to a particular case:-

(i) Registered will.

(ii) Legal Heir certificate.

(iii) Natural Heir Certificate issued by CRO.

(iv) Orders of the Court.

(v) Family settlement forming part of a judgement/decree.

The Municipality will, however, inter alia, give one month notice in at least two leading newspapers before allowing transfer in such cases at the costs of party concerned. The Municipality will also send notices through registered post to all the 1st class natural legal heirs of deceased to check any fraudulent transfer.

(7) Transfer on the basis of Power of Attorney : The Executive Officer/ Commissioner of the Municipality would ensure that person executing the Power of Attorney is alive and present at the time of transfer. In case he/she is unable to come present before the Executive Officer/Commissioner for the reasons beyond his control, he/she will required to furnish Affidavit duly attested PUNJAB GOVT. GAZ. (EXTRA), OCTOBER 26, 2021 (KRTK 4, 1943 SAKA) 2661 by Magistrate 1st class in support of his Power of Attorney. However, if the Executor of Power of Attorney is staying within reasonable distance from Municipality headquarters the Executive Officer/Commissioner may depute Assistant Trust Engineer/Assistant Corporation Engineer/Assistant Municipal Engineer or Superintendent but not below these ranks to personally contact the said person(s) and to make report in writing. In case where a Power of Attorney has been executed by a person staying abroad, he/she shall furnish his consent, duly notarized and attested by the Indian High Commissioner or Consulate in support thereof.

The Power of Attorney may also be required to furnish an Indemnity bond as a measure of safety check.

(8) Where an Allottee fails to make the due payments as per the allotment letter, the Allottee shall be liable to pay penal interest as per Rule 16(3). In case, the Allottee do not pay the instalment(s) within six months of its having become due, the Municipality shall be entitled to resume the property. The Municipality shall resume the property after giving an appropriate opportunity of hearing to the Allottee.

(9) An Allottee or transferee, as the case may be, may prefer an appeal, against the orders of resumption of the property and forfeiture of his/her amount deposited, to the State Government, within a period of sixty days from the date of such resumption order, and the State Government may pass appropriate orders including restoring the said property, but subject to the payment of penal interest, restoration charges @ 2.5 percent of current reserve price with total due amount, as may be considered appropriate. The amount will be deposited with the Municipality within 30 days of passing such order. If the Allottee fail to complete the formalities within 30 days, as enumerated above and make necessary deposits with the Municipality, it will be presumed that the Allottee is not interested in the property and the Municipality will be competent to cancel the allotment and resume the property.

(10) The conveyance deed shall be executed on payment of entire consideration money along with interest or any other amount due and it has to be executed within three months of clearance of all dues. It will be signed on behalf of the Municipality by the Executive Officer/Commissioner. If the Allottee wants to execute conveyance deed for the purpose to taking loan from bank then he/she PUNJAB GOVT. GAZ. (EXTRA), OCTOBER 26, 2021 (KRTK 4, 1943 SAKA) 2662 has to submit request from concerned bank and indemnity bond from Allottee regarding raising of construction within one year from executing of conveyance deed.

(11) In case the Municipality fails to handover the possession of property to the buyer /Allottee within the stipulated time mentioned in the allotment letter due to some court case or otherwise, it shall communicate this fact to the buyer /Allottee within a period of ninety days from the date of allotment, enabling him/her to apply for taking back his earnest money or any other amount deposited with the Municipality if he/she so desires within a period of three months from date of such intimation.

(12) The Allottee or the transferee, as the case may be, shall complete the construction, after getting the building plan approved from the competent authority, within a period of three years from the date of possession of the plot, failing which the Municipality may resume the plot. However, the said period may be extended, on year to year basis, subject to a maximum further period of twelve years, on written request and on payment of fee, which shall be percentage of the Reserve sale price under rule 7 of Principal Act [applicable on the first day of such extension] or percentage of allotment price whichever is higher, as the case may be, as specified in the Table given below:- TABLE Number of year Percentage of reserve price fixed under Section 7 of from which fee is Principal Act on the first day of such extension, or to be charged percentage of allotment price, whichever is higher, as the case may be. However, before the coming into force of this Act, the calculation to be made on the reserve price fixed under the previous law.

4th year Two per cent 5th year Two per cent 6th year Two per cent 7th year Two per cent 8th year Two per cent 9th year Three per cent 10th year Three per cent PUNJAB GOVT. GAZ. (EXTRA), OCTOBER 26, 2021 (KRTK 4, 1943 SAKA) 2663 11th year Three and half per cent 12th year Three and half per cent 13th year Four per cent 14th year Four per cent 15th year Four per cent

Provided that five percent interest on the non construction fee for the elapsed period shall be charged:

Provided further that non construction fee shall be charged at 50% of the above rates if the plot is owned by a woman or a senior citizen of the age of sixty years and above (fifty percent fee shall be charged for the years subsequent to attaining sixty years of age and in case of women from the date of becoming owner). If the property is held jointly by male and female then the reduced non-construction fees shall be charged on the share of women only on pro-rata basis:

Provided further that the fee as specified above shall be charged yearly commencing from 1st day of January to 31st December of the relevant year:

Provided further that if basic amenities in the scheme are provided late to the Allottees then three years period will be given for the construction from the date of providing such amenities with the approval of Government.

(13) In case construction is not carried out on a plot till the end of fifteenth year, the Executive Officer/Commissioner of the Municipality shall ensure that such property is resumed by the Municipality after giving due notice of thirty days.

(14) An appeal against resumption order under sub-rule (13) shall lie with the State Government, which may be made within a period of sixty days from the date of receipt of copy of the order of resumption. In case of acceptance of appeal by the State Government, extension fee at the rate of five per cent per annum and restoration charges @ 2.5 percent of current reserve price shall be chargeable. The fee for the period of extension shall be paid by the Allottee/ transferee, as the case may be, within a period of thirty days from the due date and if not paid, penal interest at the rate of 15 per cent on the amount due, be charged for the amount due/delayed payment.

(15) It will be the responsibility of the concerned Superintendent/ Senior PUNJAB GOVT. GAZ. (EXTRA), OCTOBER 26, 2021 (KRTK 4, 1943 SAKA) 2664 Assistant/clerk to check all the documents required for any particular job and shall put the case forward after completing all the formalities. An accountant/ concerned Assistant/ accounts clerk will be responsible to check all type of calculations in the concerned sale file.

(16) However, the State Government may decrease the rate of extension fee for a particular period or exempt it in exceptional cases, such as:-

(i) The period during which the serving soldiers and officers of the Armed Forces remain posted at non-family stations, the fee in case of residential plots can be waived-off after due consideration or

(ii) In case of legal heirs of the deceased

(iii) In case of widows, unmarried women,

(iv) In case of next of the kin of Police and Para-military forces killed in action

(v) In case of Allottees or their spouses suffering from chronic diseases (Cancer, Kidney Failure, Liver Failure, Mentally Challenged beyond fifty percent, invasive surgical intervention of Cardic cases) due to which they were not able to carry out construction within stipulated period (Certificate given by Civil Surgeon of District in which the Allottee resides shall be considered) or

(vi) The cases of officers or officials of the State Government and Public Sector Undertakings of the State Government who were required to serve outside the State of Punjab in accordance with their service conditions or under conditions due which Allottee could not complete the construction in time, shall be considered for waiving off of extension fee only for Residential plots

Provided that no such fee shall be charged if the allotment is made to any department or Public Sector Undertaking of the State/Central Govt. and any outstanding amount on the date of publication of these rules in this case and in case of widows/ cancer patients is deemed to be waived off and not to be recovered.

Explanations:- For the purposes of these rules:-

(i) constructions of one habitable room, kitchen, bath room and water- PUNJAB GOVT. GAZ. (EXTRA), OCTOBER 26, 2021 (KRTK 4, 1943 SAKA) 2665 closet along with taking of permanent connection of water and sewerage supply and electricity, in case of residential buildings; and

(ii) raising of twenty-five percent construction of the maximum permissible coverage area, in case of commercial or any other type of building, shall be deemed to be a complete building.

Terms and Conditions relating to the Sale of Municipal Properties

1. All the properties will be sold through e-auction/draw of lots.

2. The bid is subject to reserve price by the Municipality and no bid below the reserve price will be accepted.

3. Each bidder will have to deposit Earnest money for every property for which he/she wants to bid in the e-auction before start of bidding. Earnest money is mentioned against each property.

4. The bidder will have to pay processing fee through e-payment.

5. The bidding is non-transferable.

6. The Chairman, Improvement Trust/Commissioner Municipal Corporation/ President Municipal Council/Nagar Panchayat reserves the rights to accept, reject or cancel any one or all the bids without assigning any reason.

7. The allotment will be made on the basis of highest bid quoted by the bidders. The bidders quoting highest amount of bid will be declared successful, subject to the fulfilling of all other conditions of notice of eauction. Minimum three bids from different bidders is a pre requisite for acceptance of such bids.

8. The Earnest money of unsuccessful bidders shall be automatically refunded through online mode only.

9. The Earnest money of successful bidders shall be adjusted towards the sale money.

10. The Allotment is done under the Transfer and Management of Municipal Properties Act 2020, the rules made thereunder and as per instructions issued by government time to time.

11. The properties are sold ‘as it is where it is’ basis.

12. The 6% cess (4% general cess+ 2% cancer cess) will be received along with 10% amount of total sale price immediately after the auction, after adjusting the amount already paid as earnest money.

PUNJAB GOVT. GAZ. (EXTRA), OCTOBER 26, 2021 (KRTK 4, 1943 SAKA) 2666

13. In case of Multi-storeyed houses/Flats (Self Financing Mode),-

(i) Twenty five percent of the sale price of such house, (after adjusting the amount of five percent of reserve price paid as earnest money), shall be payable within a period of forty five days from date of allotment. However, the said amount may be deposited within a period of next thirty days subject to the payment of three percent as penalty of the said amount. If the said amount is not paid within the total period of seventy five days, the allotment shall deemed to be cancelled and the amount already deposited shall stand forfeited;

and

(ii) the remaining amount (seventy five percent) shall be deposited in six equal half yearly installments, with simple interest at the rate of nine and half percent per annum.

(B) In other cases.-

(i) five percent of sale price:-

(a) in the case of e-auction, shall be deposited within 4 working days after the auction, after adjusting the amount already paid as earnest money by the Allottee.

(b) in the case of allotment by draw of lots or otherwise, shall have to be deposited within a period of fifteen days from the date of draw or otherwise, after adjusting the amount already paid as earnest money.

(ii) twenty percent alongwith six percent cess shall be deposited within a period of thirty days from the date of allotment in case of properties sold through e-auction, draw of lots or otherwise.

Provided that the said amount may be deposited within a period of next thirty days, however, subject to the payment of three percent of the due amount as penalty.

Provided further that if the said amount is not paid even within the total period of seventy five days, the allotment shall be deemed to be cancelled and the amount already deposited shall stand forfeited.

(iii) the remaining amount (seventy five percent) shall be deposited in four equal yearly installments, with simple interest at the rate of nine and half percent per annum.

PUNJAB GOVT. GAZ. (EXTRA), OCTOBER 26, 2021 (KRTK 4, 1943 SAKA) 2667

(2) Five percent rebate shall be given on the total sale price, if entire payment is made in lump sum, by an Allottee, within a period of thirty days from the date of issue of allotment letter.

(3) If delay is caused in making the due payment of installments, in addition to the normal rate of interest payable as per the allotment terms and conditions, additional interest at the rate of three percent as penalty shall have to be paid within six months after due date and if the delay is more than 6 months then penalty @ six percent on the amount due is to be levied for the entire period of default.

(4) Where an Allottee or transferee, as the case may be, fails to make the due payments as per the allotment letter, the Allottee shall be liable to pay penal interest as per Rule 16(3). In case, the Allotteed o not pay the instalment(s) within twelve months of it’s becoming due, the Municipality shall be entitled to resume the property. The Municipality shall resume the property after giving an appropriate opportunity of hearing to the Allottee.

(5) An Allottee or transferee, as the case may be, may prefer an appeal, against the orders of resumption of the property and forfeiture of his/her amount deposited, to the State Government, within a period of sixty days from the date of such resumption order, and the State Government may pass appropriate orders including restoring the said property, but subject to the payment of penal interest, restoration charges @ @ 2.5 percent of the current reserve price along with total due amount with the rider that the entire amount so becoming due will be deposited with the Municipality within 30 days of the passing of such order. If the Allottee fails to complete the formalities as enumerated above and make necessary deposits with the Municipality within the stipulated time of 30 days, it will be presumed that the Allottee is not interested in the property and the Municipality will be competent to cancel the allotment. Such property may be sold by the Municipality as per rules.

14. The Allottee shall be required to execute agreement within a period of thirty days from the date of issue of the allotment letter with the Executive Officer/Commissioner of the Municipality, otherwise penalty at the rate of 0.1% of the total sale price, subject to a minimum of one thousand PUNJAB GOVT. GAZ. (EXTRA), OCTOBER 26, 2021 (KRTK 4, 1943 SAKA) 2668 rupees, shall be chargeable for the period of delay of a month or part thereof.

15. Five percent rebate shall be given on the total sale price, if entire payment is made in lump sum, by an Allottee, within a period of thirty days from the date of e-auction or allotment, as the case may be.

16. The allotment letters will be issued to successful bidders after the confirmation of auction by the Municipality and approval of the government.

17. The Allottee or the transferee, as the case may be, shall complete the construction, after getting the building plan approved from competent authority within a period of 3 years from the date of possession of the plot.

18. The Non-construction fees will be charged from the Allottee as per the rules/instructions issued by the government from time to time.

19. The cost and expenses of preparing, execution, stamping and registering the sale deed, agreement for sale shall be paid by the Allottee.

20. The successful bidder will pay all the taxes, cess etc. applicable from time to time to the Municipality.

21. The successful bidder will pay 10% extra amount of total bid amount for corner property.

22. The corridor will be used for public. The encroachment will not be allowed in public corridor.

23. The Allottee shall be liable to pay enhancement in compensation as per the orders of the court in case of property is Allotted through a draw of lots.

Chapter-VII (Miscellaneous)

Where this provision sits

ActPunjab Management and Transfer of Municipal Properties Rules, 2021
Section22
Marginal noteAllotment and ancillary matters
JurisdictionState of Punjab
StatusIn force as published by the source

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