LDA increases fee on vacant plots

[Salman]

LDA increases fee on vacant plots

LAHORE TO curb practices of hoarding of plots, which is leading to an unrealistic hike in the prices of land and making construction of houses unaffordable for the people, the Lahore Development Authority has increased the fee being charged for extension in the building period of vacant plots across its jurisdiction including private housing schemes.

The decision was approved under the strategic planning of the authority and would be implemented with immediate effect across the provincial metropolis as well as in the LDA governed area, LDA sources. They added the purpose behind this move is to promote the habitation on thousands of plots lying vacant so far in a number of housing schemes in the city.

As a result of this decision, only genuine buyer can buy a plot and the practice for purchasing plots for the sake of investment will be curbed, sources claimed. Under the LDA rules, the initial period of construction is three years after which the land owner has to pay the recently imposed penalty. Sources said no penalty was imposed on the houses below and up to five marla.

The LDA sources revealed that according to the new rates, the penalty for delaying construction of a house above five marla up to seven marla, after three years, will be Rs 2000 in first year, Rs 4000 in second year, Rs 6000 in third year, Rs 8000 in forth year and Rs 10,000 in fifth year. After fifth year, the amount of penalty will remain the same for the coming years.

They said the penalty for delaying construction of a house above seven marla up to 10 marla will be Rs 20,000 in first year, Rs 30,000 in second year, Rs 40,000 in third year, Rs 40,000 in forth year and Rs 40,000 in fifth year. The penalty for delaying construction of a house above 10 marla up to 1 Kanal will be Rs 37,500 in first year, Rs 56,250 in second year, Rs 75,000 in third year, Rs 75,000 in forth year and Rs 75,000 in fifth year.

The penalty for delaying construction of a house above 1 Kanal will be Rs 75,000 in first year, Rs 112,500 in second year, Rs 150,000 in third year, Rs 150,000 in forth year and Rs 150,000 in fifth year.

The penalty for delaying construction of a commercial plot up to two marla will be Rs 7,500 in first year, Rs 11,000 in second year, Rs 15,000 in third year, Rs 15,000 in forth year and Rs 15,000 in fifth year.

The penalty for delaying construction of a commercial plot above two marla up to four marla will be Rs 12,500 in first year, Rs 37,500 in second year, Rs 50,000 in third year, Rs 50,000 in forth year and Rs 50,000 in fifth year.

The penalty for delaying construction of a commercial plot above four marla up to 8 marla will be Rs 25,000 in first year, Rs 75,000 in second year, Rs 100,000 in third year, Rs 100,000 in forth year and Rs 100,000 in fifth year.

The penalty for delaying construction of a commercial plot above eight marla will be Rs 75,000 in first year, Rs 110,000 in second year, Rs 150,000 in third year, Rs 150,000 in forth year and Rs 150,000 in fifth year.

Meanwhile, the LDA has also increased the late fee for getting completion certificates for residential, commercial and industrial buildings. Sources said the new completion fee for residential building is Rs 2000 and after first three years it will be Rs 2000 per year and for subsequent years it will be Rs 3000/year. Sources added that the new late fee for completion certificate for a commercial and industrial building is Rs 10,000 per year respectively.

DG LDA Ahad Khan Cheema, while talking with The News, said ideally the land cost should be only 10 to 15 percent cost of the total cost of construction of a project but here it is more than 60 percent.

He said people are investing in plots instead of construction, which if starts will help over 40 different industries to work. He said the authority has already relaxed the building rules and now people can get more height in comparison of the past. He said tax on vacant plots will bring a very positive change in the economy.