HUDA mulls increased rate of interest for defaultershttps://indianexpress.com/article/cities/chandigarh/huda-mulls-increased-rate-of-interest-for-defaulters/

HUDA mulls increased rate of interest for defaulters

Defaulters,who have fallen behind in paying instalments to the Haryana Urban Development Authority for its sites in Panchkula,may soon be charged an increased rate of interest.

Defaulters,who have fallen behind in paying instalments to the Haryana Urban Development Authority (HUDA) for its sites in Panchkula,may soon be charged an increased rate of interest. HUDA is reportedly considering a proposal to increase the penal interest for defaulters from 12 to 15 per cent. Also,the rate of interest for allottees repaying the instalments regularly may be increased from 9 to 12 per cent.

The decision is expected to affect all people who have been allotted sites in Sectors 2,6,21,25,26,27,28,31 and group housing societies since 2006.

According to HUDA officials,out of the total outstanding amount (Rs 286.72 crore),Rs 100 crore is to be paid by those allotted residential sites.

While the HUDA considers the move a step towards minimising the default rate,allottees find the proposal of increasing the interest rate for regular payers a little hard to swallow. “Defaulters should be penalised with an increased rate of interest but non-defaulters cannot be covered under the same ambit. During a global economic slowdown,it will be a major blow to us,” said an allotee who owns a residential plot in Sector 6.