Amnesty scheme planned for defaulters in urban estates

Eyeing realisation of around Rs 2,000 crore revenue, stuck with defaulting allottees of residential, commercial and institutional properties in urban estates under the Housing and Urban Development Department, the state government is coming up with an amnesty scheme allowing one-time settlement in such cases.

Involving over 700 properties in various urban estates across the state, the scheme will target those who have defaulted on the payment of instalments, extension fee for non-construction or not adhering to the terms of allotment.

Confirming the development, a senior government functionary said since it involved tweaking previous policies and would also have financial implications, the issue would be tabled in the coming state Cabinet meeting before being notified.

Most of these properties are in Mohali and Ludhiana urban estates. For the allottees, who have defaulted on the payment of instalments, the government proposes to waive 6 per cent penal interest, subject to the payment of pending instalments and 12 per cent interest.

Some residential property owners have defaulted on the payment of extension fee for non-construction within the stipulated period. As per rules, allottees are given three years to raise construction on minimum 25 per cent of the allotted area, failing which a non-construction fee is levied on them. To incentivise defaulters, the government is offering one-time settlement by allowing allottees to deposit certain amount to settle such cases.

Over the years, the prices have spiralled, but such properties are stuck in litigation between allottees and the authorities, holding up government revenue.

Another issue related to the land allotted to various companies for Information Technology Enabled Services (ITES). “There are around 80 cases, where the allottees are facing allotment cancellation due to violation of terms and condition of allotment. Such defaulters will be asked to pay a certain amount on the allotment price. Some big name in the IT sector will benefit from the scheme,” said a government functionary.

To be tabled in Cabinet meeting

• The scheme will target those who have defaulted on the payment of instalments, extension fee for non-construction or not adhering to the terms of allotment in urban estates
• The issue will be tabled in the coming Cabinet meeting before notifying one-time settlement policy in such cases