UD eliminates ambiguity over 50% premium payment offer to builder

Earlier, there was a contention that the benefit has been provided only on projects that commenced from Jan, 2021

The state Urban Development Department under-secretary Kishor Gokhale, on Friday, issued a letter to the BrihanMumbai Municipal Corporation (BMC) commissioner, stating that 50 per cent discount on premiums payments is applicable on both new as well as old projects. Earlier, there was a contention that the benefit has been provided only on projects that commenced from January, 2021, which is not the case. The Maha Vikas Aghadi government in January, 2021, declared a 50 per cent concession to builders on premium payments. Developers, who opt for the discount, however, will have to pay the entire stamp duty when they sell flats to buyers. Builders will have to give an undertaking to the local bodies that they will pay the entire stamp duty and not charge any stamp duty from home buyers, the issued GR stated. However, the announcement was interpreted in different ways. Therefore, through a letter to BMC, it eliminated the ambiguity.