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This is an archive article published on July 21, 1998

PUDA asks defence personnel to pay more for Sec 71 plots

S.A.S. NAGAR, July 20: The Punjab Urban Planning and Development Authority (PUDA) has once again revised the cost of residential plots al...

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S.A.S. NAGAR, July 20: The Punjab Urban Planning and Development Authority (PUDA) has once again revised the cost of residential plots allotted to defence personnel in Sector 71 of this township some years ago.

Nearly 10 years after the plots were finally allocated and with the instalments at revised prices paid by most of the allottees as far back as 1992, PUDA has issued a notice claiming additional price of land.

The notice issued by the Estate Officer, S.A.S. Nagar, received by some plot-owners earlier this month, demands an additional Rs 199.24 per square yard. The plots in this sector measure up to 400 square yards.

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PUDA officials say the cost has been revised as per the directions of the Punjab and Haryana High Court in 1996. "The prices of residential plots in Sector 71 were examined afresh as there was an overall increase of land prices over the years," an official said.

As per information furnished by the Land Acquisition Collector (LAC), the rate per acre determined for Sector 71 is Rs 1.75 lakh per acre, on which solatium charges (compensation) come to Rs 52,500 per acre. In addition, appreciation charges are also to be paid at the rate of 12 per cent from November 1980 to July 1984. Further, an interest of nine per cent from July 1984 to July 1985 and of 15 per cent from till date has been imposed.

Figures available with the LAC office show that PUDA has till March 31, 1998, paid about Rs 32 crore for 537 acres towards the original cost and enhanced compensation, appreciation, solatium and interest of land in these sectors.

This amount does not include about Rs 1.08 crore still pending for payment. The net amount works out to be about Rs 6.13 lakh per acre and officials say this is the amount on which the enhanced price is being worked out.

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For Sector 71, the salable area is 134 acres and the cost of land, including compensation, administrative charges and interests, comes to almost Rs 17 crore. The difference between this and the previous rates comes to about Rs 13 crore. Hence, as per the revised rates, the difference chargeable per acre is Rs 9.64 lakh, which comes to Rs 199.24 per square yard.

"The increase of land cost after all these years of allotment is not only unfair, but also appears to be prejudiced. Already we are paying through our nose on account of constant revision of prices and heavy interest being charged by PUDA," one of the affected officers said.

The PUDA had, in 1975, invited applications for allotment of plots at the rate of Rs 85 per square yard in Sectors 70 and 71, which had been earmarked as defence sectors. When, after a lapse of 14 years, the plots were finally allocated to defence personnel in 1989, the cost had risen to Rs 400 per square yard. By 1992, a large number allottees had paid the cost of their plot which had amounted to about Rs 1.60 lakh.

The residents of these sectors had earlier alleged that PUDA had fixed arbitrary allotment conditions and had even submitted a misleading affidavit before the National Consumer Dispute Redressal Commission, which showed 28 persons as defaulters in payment of principle amount and at the same time, showed the balance of principle amounts against 12 as nil. Residents say compound interest at high rate was also being charged by PUDA on instalments, contrary to the 1996 High Court order.

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