Odisha government should dispense with the exorbitant charges on land owners for issuance of power of attorney to do business for joint development projects said realtors here on Wednesday. Addressing a media conference here, Mr D S Tripathy, Chairman of CREDAI, Odisha and president Binay Krishna Das said the real estate sector is being adversely affected due to huge charges on land owners for POA.
Incidentally, other states have provisions for a separate category for Development Agreement Cum General Power of Attorney (DACGPA) where charges are very nominal. Ironically, in Odisha, the registration authority is charging normal rate for both getting and cancellation of POA @ 7 per cent on market value of land in the absence of specific provision for this purpose.
These unreasonable charges shoot up prices of houses. This has forced developers to sell homes at high rates. The realtors are unable to compete with prominent developers from neighbouring states.Investment in housing sector has slipped to an all time low in Odisha with consumers preferring to invest in real estate in other states.
Since the state government is keen and committed to promote Affordable Housing, Ease of Doing Business, Start up and Stand up, there is an urgent need for creation of separate category for DACGPA with nominal fees, said Mr Das. The CREDAI claimed that the government could earn more more at the time of registration as property value becomes higher by five times after development.