What is PLC (preferential location charges)?
Also called: PLC, preferential location charge, location premium, PLC charges kya hota hai
Builders add PLC, or preferential location charges, to units in a better position, such as park-facing, corner, road-facing or certain floors. It is usually a per-sq-ft add-on or a percentage of the basic price, on top of the BSP.
Two identical 3 BHKs in the same tower rarely sell for the same price. The one overlooking the central lawn or a golf course carries a preferential location charge; the one facing the neighbouring plot's boundary wall doesn't. PLC is how developers price that difference. In NCR projects it tends to be ₹100 to ₹300 per sq ft for each preference, or 2% to 5% of the BSP.
Charges can stack. A corner unit that also faces the park may attract two PLCs, and some builders fold floor premiums into the same line. The cost sheet should state the basis of each: which preference, at what rate, on which area.
The preference has to exist at possession, and that's where buyers lose money. People have paid park-facing PLC only to find that the green shown in the brochure became a community hall or another tower after the plan was revised. Consumer commissions have ordered PLC refunded with interest in such cases, but only where the buyer could prove what was promised. Keep the brochure and the site plan attached to the allotment letter, and make sure the builder-buyer agreement names the feature ('facing the central green, Block B') rather than just 'PLC: ₹4,20,000'. Under Section 14(2) of the RERA Act, changes to the sanctioned layout need written consent from two-thirds of the allottees, not counting the promoter.
GST applies to PLC at the same rate as the flat, since it is part of the same construction supply, and stamp duty is charged on it as part of the agreement value. Whether the premium is worth paying is a judgement call. Park-facing flats tend to resell faster, but a heavy PLC on a flat you'll live in for twenty years is simply money spent on a view.
On the Dwarka Expressway in Gurugram, a 1,900 sq ft (super area) 3 BHK facing the central park carries a PLC of ₹250 per sq ft. That adds ₹4.75 lakh to the price, plus about ₹23,750 as GST at 5%.
Paying for a view or park that appears only in the brochure. If the agreement doesn't tie the charge to a feature in the sanctioned plan, recovering it after a layout change is an uphill fight.
Questions people ask about PLC (preferential location charges)
Is PLC negotiable?
Frequently. Builders waive or reduce it to move leftover inventory, particularly close to possession. Get any waiver on the signed cost sheet.
Can I get my PLC back if the promised park is not built?
You can claim a refund with interest before the state RERA or a consumer commission, and your case is far stronger if the agreement names the specific feature you paid for.