Section 3(f) in Simplification of the Procedure for Development of Colonies in the State of Punjab up to an Area of 10 Acres
(f)The Letter of Intent (LOI) shall also enjoin upon the applicant to pledge/hypothecate in favour of the State Government immovable property equivalent to Rs. 2.00 lakh per gross acre, in lieu of the Bank Guarantee that is normally required to be furnished under the Punjab Apartment and Property Regulation Act, 1995 and rules framed thereunder, by a regular promoter, as a security for execution of the Internal Development Works approved. The value of the said property shall be reckoned at the rates fixed by the District Collector for the purposes of registration of sale deeds or documents. The property may be situated within or outside the proposed colony. The property shall remain pledged till a Completion Certificate is finally issued by the STP/DTP, in accordance with the procedure laid down in PAPRA Act/rules.
