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Credai challenges Goa government’s notification on revised registration fees, Real Estate News, ET RealEstate

Credai challenges Goa government's notification on revised registration fees, Real Estate News, ET RealEstate
PANAJI: The Confederation of Real Estate Developers Association of India (Credai) has challenged the validity of the notification dated June 17 which has increased registration fees payable in respect of agreement without possession from Rs 500 to 3% of the total transaction or market value, whichever is higher. The high court of Bombay at Goa has admitted the petition.

The association has stated that this revised registration fee is unreasonable, excessive and not in consonance with the national policy of promotion of affordable housing.

The association has submitted to the high court that the registration fee is excessive for agreements of sale without possession, more particularly for transactions falling within slabs ‘upto 50 lakh’ and ‘above 50 lakh upto 75 lakh’, during the pre-completion stage compelling the prospective purchaser to pay additional sums in the form of 5% GST, 2.9% stamp duty and 3% registration fee, totalling to 10.9% even before getting possession of the unit.

“Such increase in the expenditure at the stage of entering into an agreement for sale, without possession, has the effect of imposing excessive and unreasonable financial burden at the very preliminary stage,” the association has stated.

Imposing this fee at the stage of agreement of sale without possession will be “deterrent to all the low to middle income buyers in as much as the same shall be added to the initial cost in the unit thereby making it prohibitive and/ or onerous on the buyers which shall have a direct bearing on the fundamental right of shelter and/or constitutional right of owning property,” the association added.


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