Punjab cabinet approved reduction in interest on enhancement from allottees

The Punjab Cabinet on Sunday gave nod for the reduction in the interest to be charged on the enhancement amount recovered from allottees of the development authority Improvement Trust.

The rate of interest to be charged on the enhancement recoverable will be reduced from 15 per cent to 7.5 per cent. This decision was taken in the cabinet meeting chaired by Chief Minister Charanjit Singh.

Addressing the media, Channi said the landowners usually approach the courts for enhancement of the compensation for their land acquired for setting up residential colonies by the state-owned development authorities. The enhancement is the amount which is decided by the courts and it is over and above the compensation already given to the land owners for their land acquired.

According to a spokesperson of the Chief Minister’s Office, around 40,000 families under various schemes of Improvement Trusts would be benefitted by this decision. The step has been taken on the repeated requests received from various Improvement Trusts either to waive or reduce the rate of interest to be charged on the enhancement amount to be recovered from the allottees.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)