CHENNAI (INDIA): Property developers have urged the Tamil Nadu Government to roll back the increase in registration charges as it would lead to hike in “project costs”.
“We welcome government’s move to cut the guideline valueby 33 per cent. But, we did not expect that there will be anincrease in registration charges from one per cent to threeper cent.”, Confederation of Real Estate DevelopersAssociation of India (CREDAI), Chennai, President, SureshKrishn told reporters here.
Stating that the realtors have been making requests toGovernment including a cut in guideline value, he said, “Thegovernment’s decision to reduce 33 per cent of guideline valueis welcome move”.
“We really do not know why they (Government) reducedguideline value and increased the registration charges”, hesaid.
“The increase in registration charges will have negativeimpact on business and to customers. It will lead to increasein cost of the project. We therefore appeal the goverment toroll back the registration charges to the one per cent fixedearlier”, he said.
Realty developer House of Hiranandani, Chairman andManaging Director, Surendra Hiranandani said industry fear theimpact will not be “much”, as the increase in the registrationfee will compensate the reduction in guideline value”.
“We do not expect the volume of transactions to go up. It may neither bring down the cost of apartments significantlynor boost the sale of plots”, he said.
Source: Press Trust of India