800pc raise in LDA commercialisation fee

[Lahore_Real_Estate]

LAHORE - With 800 per cent surge in LDA’s annual commercialisation fee, the low-income class has reached at the brink of total financial collapse.
Inflated demand notices for the payments of fee have been sent to the people, already perturbed due to shrinking earning resources. The move looks paradoxical, as on the one hand government wants people to run their business as their contribution to improve financial condition of the province, but on the other hand, irrational policy is being imposed to let people wrap up their businesses. Who masterminded the policy is best known to people working as advisors in the Punjab government.
After the hike in commercialisation fee, majority of people associated with the micro level businesses are now with no option but to close down their offices and shops. In a critical situation, imposition of inflated commercialisation fee has become a draconian move to kill people financially.
Much to surprise, before laying down the commercialisation policy, LDA did not bother to inform the people about arbitrary rise in the commercialisation fees. Though public feedback was sought by advertising the details of the commercialisation policy but these details were so complex and vague that even the experts felt mind-boggled. Voice was raised but LDA’s top guns turned the deaf ear. LDA has imposed 6 per cent as commercialisation fee on annual basis in 2009 against 3 per cent in 2008. With rise in fee, those who had paid about Rs 80,000 in 2008 now have to pay Rs 0.8m. The story does not end here, as the fee will soar up to 9 per cent at the end of 2010 and shoot up to 12 pc in 2011. The policy will expire in 2011.
As per details, before 2001, LDA used to commercialise one kanal property on permanent basis by getting 20 per cent of total value of land under scheduled rate, typically called DC rate issued by the government. After 2001, LDA continued the commercialisation policy on permanent basis on 20 per cent changes but allowed to convert residential areas into commercial zones on annual basis. Under the annual arrangement, people had to pay 3 per cent of the 20 per cent fee of total value of the property. And for the next year, 10 per cent had to pay. Instead of open plot, only the residential buildings were allowed to change into commercial units. The policy led to worst commercialisation mess creating numerous problems regarding social and cultural constraints, traffic gridlocks, chaotic parking, noise and air pollution and others. With the shift in policy, property rates jumped high that brought boom in real state business.