Bashundhara Group increases land ownership transfer fee again
Special Report :
In a move that has sparked frustration among property owners, East West Property Development Ltd.
(EWPD), a subsidiary of Bashundhara Group, has increased the land ownership transfer fee back to BDT 10 lakh per katha, significantly impacting those looking to sell or transfer property in Bashundhara Residential Area.
The fee had previously been reduced to BDT 5 lakh per katha following the August 5th movement, which highlighted concerns over excessive developer-imposed charges.
However, the recent reversal means that owners of a 10-katha plot must now pay a staggering BDT 1 crore just to transfer ownership-an amount that is among the highest in the country.
Owners of Bashundhara plots are being impacted the most as this practice hurts them most.
Unlike government-imposed taxes such as stamp duty, gain tax, and registration fees, the Bashundhara transfer fee is an additional developer-imposed charge, applied every time a property changes hands.
This means that long-term investors, homeowners, and heirs inheriting property must repeatedly bear this financial burden, adding significant costs to real estate transactions in the area.
Beyond the transfer fees, Bashundhara also imposes monthly service charges on landowners, further increasing the overall cost of property ownership.
These fees are in addition to standard property taxes and utility costs, making Bashundhara one of the most expensive gated communities in the country.
While Bashundhara Group has the highest transfer fees in Bangladesh, other housing estates also impose similar charges, though at different rates and justifications. Below are some key examples:
1. Purbachal American City (ABC Real Estate Ltd.)
– Transfer Fee: Yes, they charge a fixed fee per Katha when ownership changes.
– Justification: They manage security, roads, and other community services.
2. Lake City Concord
– Transfer Fee:Yes, for resale of apartments or plots.
– Justification: Community development and administration.
3. Jamuna Future Park Residential Project
– Transfer Fee: Charges are imposed for property resales within the estate.
4. RAJUK Uttara Model Town & Purbachal New Town
– Transfer Fee: No private transfer fee is charged by RAJUK itself, but there are government-imposed taxes (gain tax, registration fee, stamp duty).
– Key Difference: Since RAJUK is a government authority, buyers don’t pay a developer-specific transfer fee.
Adding to the growing controversy surrounding Bashundhara Group, recent reports indicate that the company’s owners are being interrogated over alleged money laundering activities.
While no concrete proof has been disclosed to the public, the allegations have intensified scrutiny on the group’s financial dealings.
Many stakeholders and analysts speculate whether these investigations will impact the real estate sector and property transactions within Bashundhara Residential Area.
Concerns have also been raised regarding the “lack of transparency” in the group’s financial management, further fueling debates on the legitimacy of their high transfer fees and other charges imposed on property owners.
Despite these allegations, Bashundhara Group has not made any public statements addressing the issue, leaving many property owners uncertain about potential legal and financial ramifications.
Legal experts argue that there is no specific law in Bangladesh that mandates a private developer to charge a transfer fee after a buyer has obtained full ownership rights.
The legitimacy of such fees has been a point of contention, with many calling for regulatory intervention to cap or eliminate unjustified charges imposed by developers.
In government-managed housing areas such as RAJUK’s Uttara Model Town or Purbachal New Town, there are no such developer-imposed transfer fees.
Property owners there only pay government-imposed taxes and registration fees, which are clearly outlined under Bangladesh’s real estate laws.
The sharp increase in transfer fees could have several negative effects on the Bashundhara property market:
1. Reduced Liquidity: High fees make it more difficult for owners to sell their plots, leading to lower transaction volumes.
2. Discouraging Investment: Potential investors may avoid purchasing property in Bashundhara due to the added financial burden.
3. Legal Challenges: Homeowners may seek legal action to challenge the lack of legal justification for the transfer fee.
Property owners and real estate stakeholders are urging Bashundhara Group to reconsider its pricing policies, arguing that the fees are exorbitant, repetitive, and unfair.
Some have suggested that if a fee must be charged, it should be reasonable and transparent, rather than an arbitrary amount that fluctuates without clear regulatory oversight.
Many believe that regulatory bodies such as RAJUK and the Ministry of Housing and Public Works should step in to establish clear guidelines on private developer fees to protect property buyers from exploitative charges.