Builders in Pune can use credit notes for wider paymentsPropertyWala.com

Pune Municipal Corporation (PMC) assured to extend or renew the credit notes offered to developers after the standing committee approved the proposal.
From now onwards these notes can be used to pay property taxes, sky sign department tax, water taxes, and road digging charges. The proposed roads and bridges built through this initiative are located in Hadapsar, Kharadi and Mundhwa.

The civic body only allowed credit notes for building permits when they were first approved in the month of January. These notes are provided to road contractors in public-private partnerships. Roads are being built without paying cash to developers, as Pune Municipal Corporation has lost a good chunk of revenue due to the pandemic. The PMC only planned to allow the exchange of these credit notes for the payment of a building permit or charges.

Developers can pay different charges / fees

PMC planned to develop roads and bridges on the basis of public-private partnerships. As part of this initiative, credit certificates issued for the development of facilities. Developers can use these certificates to pay a range of fees. These fees associated with building permits, such as development fees, building permit fees, and surcharges fees.

If land is not available in the PMC, then developers must take it from private landowners using FSI or TDR. To avail these notes the developer should have possession on at least 80% of the land. The PMC said that the credit notes issued in stages depending on the progress of the road works. Developers will be able to spend approximately Rs 200 crore annually via credit notes.

Chairman of the standing committee, Hemant Rasane, said, the sources of income for the civic body is limited for now. We need to find options like credit notes because they can help to boost the development projects.

BJP corporator Mahesh Wable, who gave the supplementary note, said. “In order to encourage the developers, we need to allow different modes of payments through credit notes. This helps to get a good response to the policy.”