President yet to assent to Punjab’s Bill seeking to levy registration fee on home and vehicular loans

The Bill pending with the Government of India seeks to provide powers of Sub-Registrar to the bank managers as they rued the state government started charging levy on registration of loans but in the absence of power of Sub-Registrars, bankers spent their day at Sub-Registrar’s office.

“One of us has to be at the Sub-Registrar office if the loan is to be registered. This becomes too much for us. We cannot spend an entire day in the Sub-Registrar office. The government should have waited before implementing the Act,” said a banker.

According to a government official, the state is waiting for the President’s assent. “The registration is the Centre’s subject. The Government of India asked us a few questions, and we answered. Yet, the Bill, seeking to amend Section 17 of the Property Act, is pending,” the official said.

The Punjab government brought in the legislation to mop up resources. “On account of loans, the banks have been charging a processing fee on the loans taken by the residents of Punjab. But the government did not get anything. Now, the banks are upset because they have to pay 0.25 per cent to the government. It’s not that the entire day is to be spent in the Sub-Regitrar office. There is no inconvenience. This, too, will be taken care of when the Centre sends the Bill with an assent,” the official added.

As per the legislation, the government charges 0.25 per cent registration fee on the total loan sanctioned by the banks. This, however, does not exceed Rs 1 lakh.