In a major relief to prospective flat purchasers and the beleaguered property developers, the state government on Friday stayed its earlier decision to levy a flat rate of 1% registration fee on transaction of any property, irrespective of their market value.

The government took the decision in a cabinet meeting held late on Friday.

What this means is that the earlier rule of whereby the buyer had to pay 1% on the property value, upto a maximum of Rs30,000.

Under the new rules it had framed, it had done away with the Rs30,000 cap and had ruled that a purchaser of any property would have to pay 1% on the value.

For instance, if a property was worth Rs1 crore, the registration fee would have come to Rs1 lakh as against the earlier Rs30,000.

The stay is hoped to boost the real estate business in the city. Real estate developers, already reeling under recession, had lobbied hard for status quo.

DNA Correspondent/ DNA-Daily News & Analysis Source: 3D Syndication