CLU charges increased for residential category

2550% hike for residential category; 25% cut for commercial

Applicants seeking to change the status of properties for residential development in municipalities across Punjab will now have to cough up 25% to 50% more than before on account of change of land use (CLU), external development charges (EDC), urban development cess (UDC) and permission fee (PF).

The department of local government has increased these levies by 50% in Ludhiana, Zirakpur, Mohali, Kharar, Dera Bassi, Banur and Nayagaon, and by 25% in the other urban centres.

Promoters of colonies have to deposit these charges for setting up colonies under the Punjab Municipal Act.

The increase will also impact plot-holders in regularised illegal colonies. The local bodies department charges the sum total of these charges while approving individual building plans in such colonies.

However, these charges on commercial properties, marriage palaces, petrol pumps, hotels, hospitals, institutions and others have been reduced by 25% within municipal limits across the state.

‘DONE FOR PARITY‘

A department official said the increase has been made with the aim to bring about parity among charges levied by the municipalities

(within municipal limits) and the department of housing and urban development (outside the municipal limits).

Before the current decision, these charges levied by the

municipalities were less than the department charges in the residential segment, and more for commercial segment.

The local bodies department in August 2014 reduced these charges

for residential plotted and group housing category.

In May last year, the department reduced these charges but the local bodies department did not follow suit, said the official.