Buying and selling of property has almost come to a standstill in Punjab with majority of buyers deferring deals until the state government notifies 3 per cent cut in stamp duty charges, realty consultants said.
The slackness in sale and purchase of home and commercial properties is also set to affect the revenue collection of the state exchequer, they said.
The state government in the budget last month announced 3 per cent cut in stamp duty charges to 6 per cent on urban properties.
"Sale and purchase of properties have been affected because people are awaiting the notification pertaining to reduction in stamp duty on registration of property," Confederaion of Real Estate Developers' Associations of India (CREDAI) Punjab, President Kulwant Singh said today.
"It is natural for a buyer to wait for notification regarding three per cent reduction in stamp duty charges as it will lead to huge saving for him," said Singh while citing an example, "if a buyer buys property wroth Rs 1 crore, three per cent reduction means saving of Rs 3 lakh behind one deal."
As per property dealers, prospective buyers are shying away from making purchases in case of properties valuing more than Rs 1 crore.
If buyers are deferring property buying, there are some buyers, who have already entered into property purchase agreement, are asking sellers to postpone deals till the state government makes notification of 3 per cent slash in stamp duty charges, consultants said.
"It has also seen that buyers who have committed to buy properties are requesting sellers to defer property registration until the government comes out with a notification," said a Mohali-based property consultant.
"But sometimes it becomes difficult for sellers to accede to such requests as they have also entered into agreements with other sellers for buying properties in given timeframe," he further said.
The Congress-led Punjab government in the budget presented last month had announced a cut of 3 per cent in stamp duty charges on urban properties.
"As a major step to boost this sector, I propose to reduce the stamp duty on registration of property in urban areas by a massive three per cent from the existing 9 to 6 per cent. This measure will remain in place till March 31, 2018 and will be reviewed thereafter based on its impact on the sector," Punjab Finance Minister Manpreet Singh Badal had said in his budget speech.
Mohali-based Raman said that he put his hard earned investment in the purchase of a house.
"A month back the government announced reduction in stamp duty charge, but till today no notification has been issued. I put in my hard earned investment to purchase a house, for which I have already made a part payment.
"I have been forced to delay making full payment to the house owner because if I register my property today, I stand to lose out nearly Rs 4 lakh because I will have to pay 9 per cent charge.
When contacted, Punjab, Additional Chief Secretary, Revenue KBS Sidhu said the file concerning reduction in stamp duty has been sent to the Chief Minister office.
"Then this file will be sent to Legal Remembrancer to decide on whether it is necessary to come out with ordinance for stamp duty charges reduction. It will take two weeks time," said Sidhu.
Punjab has set a target of earning Rs 2,400 crore from collection of stamp duty and registration by end of current fiscal.
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