KHANEWAL, Oct 10: Khanewal Tehsil Municipal Administration contractors for property transfer fee are allegedly fleecing extra amounts than the scheduled rates, Dawn has learnt.

According to the scheduled rates of properties in urban areas, a property buyer will pay one percent of the total value of the property to contractors, but they reportedly force the buyer to pay two or three per cent against the total value to get the property transferred.

At present the trade property is at peak in a number of residential areas in the jurisdiction of the TMA. Several property buyers have reportedly paid extra property transfer fees to contractors.

“Contractors asked me to pay Rs12,000 against the property valuing Rs400,000,” says Naeem Piracha, a buyer. He said according to the scheduled rates, the contractor should charge only Rs4,000 on the property worth Rs400,000.

Property consultant Rana Shahzad Hussain said the TMA had no control over contractors despite the fact that they were overcharging the buyer openly. “It seems contractors are doing so in connivance with TMA officials.”

But contractors say they do not overcharge the buyer against rules.

Contractor Rao Muhammad Saeed said they only received one per cent of the total value of the property being traded under the Transfer of Immovable Property Rule of 2001.

He said property buyers mentioned low prices in the transfer deed in connivance with the property seller to pay a less property transfer fee. He said the contractor had to assess the “real” value of the property at the time of receiving fees. He said that according to the law a contractor as well as TMA’s taxation officer could assess the property’s value. He added in some cases the contractor could discount the rates.

Mr Saeed said if he charged Rs12,000 on a property of Rs400,000, it would include Rs4,000 transfer and Rs8,000 assessment fees. He said they mentioned full amount in receipts but buyers forced them not to mention the assessment fee in the receipt so that they paid a reduced stamp duty to the Revenue Department.

Khanewal Tehsil Nazim Muhammad Ali Niazi said contractors were not involved in overcharging.

“TMA officials monitor the contractors properly,” he claimed. When told that there were numerous complaints about the overcharging, he said that complainants should contact him and he would resolve their problems.