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Non Payment of DHA Development Charges - Penalty & Cancellation,

(102631)
   Tayyeb
Sunday, June 12, 2016 11:44 PM 
Reply: >
For Non timely Payment of DHA Development Charges, does DHA cancels the plot incase not even a single instalment is paid. Further, what is the late payment charges or mark up charged on late payment of instalments.
IjazIqb replied on Monday, June 13, 2016 06:15 AM 

For Prism, it is 20% per year which makes it 41.6 rupees per day for a 5 marla installment (75000). As per my knowledge, only installment plots can be cancelled because of non-payment.

If you own a non-installment plot, it cannot be cancelled. You will have to pay late charges only.
Jameel MughalŪ replied on Monday, June 13, 2016 07:18 AM 

20% Compounded with almost Double in 3.5 years, Like you have 5 merla Plot and if you pay in time you pay 9 Lac, If you defer the payment 3.5 then about 17 Lac will be due and will keep increasing every year 20% Compounded, At the end of 8,9 years may reach price of plot then DHA will take over and sell in Auction to cover its cost.
Tayyeb replied on Monday, June 13, 2016 07:36 AM 

Thanks Ijaz and Jameel Mughal Sahib. Appreciated for the valuable reply.
Arsalan replied on Monday, June 13, 2016 09:22 AM 

Dear Jameel Mughal Sb.
Yes, theoretically, the development charges and penalty on them can reach your market price of the plot during the next 8-9 years, provided that the price of the plot does not increase during this whole period. But, wait a minute, why are you assuming that the price of the plot will remain stagnant for so long.

I am afraid DHA may be using another price benchmark (like DC value) to decide auction of the plot.
Tayyeb replied on Monday, June 13, 2016 02:00 PM 

Thanks Ijaz and Jameel Mughal Sahib. Appreciate your valuable input.
Jameel MughalŪ replied on Monday, June 13, 2016 05:06 PM 

Dear Arsalan, I wish property Continue Giving same return as it is giving for last 6 months, But Cumulative performance of property for 10 years or so is not more than 17 to 18 Percent
Not agreed replied on Monday, June 13, 2016 05:56 PM 

in 10 years only 18 percent? not agreed
Not agreed replied on Monday, June 13, 2016 05:59 PM 

you must write cumulative of 10 years 18 percent per annum
Tayyeb replied on Monday, June 13, 2016 07:00 PM 

Jameel Mughal Sahib has excentrally and succinctly responded to the query which at least I have fully understood. When message is clear we should not start splitting the hair as it does not add any value and to certain extent discourages the knowledgable persons to share their views, facts and insight. It is therefore requested to remain positive and take benefit of the knowledge and wisdom of forum members some of which are already identified.
Arsalan replied on Tuesday, June 14, 2016 07:49 AM 

OK Mughal Sb.

With due respect, may I request you to please just calculate compounded value of Rs. 40 Lac (price of 5 marla plot)at 17% for 10 years and then calculate compounded value of Rs. 9 lac (development charges for 5 marla plot) at 20% for 10 years and see the difference.

All i am saying is that with your assumption of auction of plot for recovery of developmental charges only when total charges (including penalties thereon)gets equal to market price price, DHA will have to wait forever. So this assumption is probably not tenable.
Zulfiqar replied on Sunday, February 25, 2018 05:36 AM 

Can anyone let me know if the development charges for phase 9 can be paid from abroad.
Zulfiqar.
Mumtaz khan replied on Saturday, August 29, 2020 06:14 AM 

Sir I have booked my 500 residential plot and I didnt pay only 4 installments till 2019 June so what will be the penalty on it ?
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