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Thursday, April 22, 2021

Haryana CM announces 100% waiver of penal interest on industrial plots

Chief Minister Manohar Lal Khattar announced that the state government has decided to introduce a settlement scheme for clearance of entire outstanding dues, which will benefit more than 2,250 industrialists.

By: Express News Service | Chandigarh |
March 26, 2021 7:57:16 pm
Haryana farmers, delayed crop payments, interest and penalties for arhtiyas, Haryana CM, Manohar Lal Khattar, Chandigarh news, indian express newsHaryana Chief Minister Manohar Lal Khattar.

As part of the government’s initiative ‘Vivaadon Ka Samadhan’, Chief Minister Manohar Lal Khattar, while presiding over a meeting with industrialists Friday, announced major relief in outstanding payment of interest and penalties for industrialists owning Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) plots.

Khattar announced that the state government has decided to introduce a settlement scheme for clearance of entire outstanding dues, which will benefit more than 2,250 industrialists. As per the announcement, if industrialists pay outstanding plot cost and enhanced cost in one go, with waiver of 25 per cent on overdue interest and 100 per cent waiver of penal interest and by freezing the interest liability up to March 31, 2021, provided the entire balance amount is paid by June 30, 2021.

“There is an outstanding amount of approximately Rs 1,500 crore. The benefit that is likely to be provided is expected to be Rs 225 crore,” Khattar said.

Rationalisation of extension fee structure

The chief minister also announced rationalisation of extension fee structure with effect from April, 1, 2021. As per the announcement, the period for completion of the project beyond the initial period of three years would be deemed extended for a further period of three years on payment of rationalised extension fee, to be decided by the Board of Directors of HSIIDC, for three categories of estates i.e. A, B and C. He hinted that for ‘A’ category estates, the 4th and 5th year extension fee would be Rs 50 per sq. mt, for ‘B’ category estates it will be Rs 25 per sq. mt and for category ‘C’, it will be Rs 10 per sq. mt.

330 allottees to be benefited

Khattar further said that presently, approximately Rs 636 crore is outstanding because of extension fees from approximately 330 allottees. He announced that it has now been decided that HSIIDC shall waive 50 per cent of the outstanding amount because of extension fee. Upon clearance of default because of extension fees as on March 31, 2021, the allottees shall be entitled to further extension on payment of the applicable fees as per revised norms. For existing allottees where the extension is beyond six years, the allottee can avail an additional year for completion of project at the extension fee for the 5 years and will then be covered under the new extension policy.

No extension beyond 6 years

Giving major relief to industrialists in outstanding extension fee, Khattar announced that no extension beyond six years shall be permissible and plot shall be mandatorily put to auction. Sharing more details in this regard, he said that in case the allottees are not able to complete their projects, now they can apply for placing the plot for sale by auction through HSIIDC before the commencement of the sixth year. HSIIDC shall place the plot on auction and after deduction of its charges, the profit on sale shall split equally with the allottee. In case it is not sold in the auction, the plot would be resumed as per policy of HSIIDC.

Process of getting occupation certificate simplified

The Haryana CM announced that in cases where the allottees had applied for issue of occupation certificate (OC) and requirements were found to be complete but OC was not issued on account of default in payments, in such case, it has now been decided that where the department had conducted inspection within the period of six months from the date when the allottee had applied for OC, extension fee would be charged till the date of inspection. If the department conducted inspection after six months or had not conducted inspection, then in that case extension fee would be charged till the date of application of OC. This provision of OC will come into force when the applicant clears the outstanding payment.

Exit route from prestigious project

The chief minister announced that in case of prestigious projects, if the allottee avails the one-time settlement scheme and pays the outstanding dues and extension fee under the scheme, such projects will be extended the benefit of the Amnesty Scheme announced by BoD/HSIIDC in August, 2019 for the ‘Exit Route’ from prestigious project category for falling short of the investment committed at the time of allotment. To opt for ‘Exit Route’, the allottee must have started commercial production with investment of at least 25 per cent of proposed Fixed Capital Investment.

Khattar also announced rationalisation of refund rules upon surrender/resumption of plots. Divulging more details in this regard, Principal Secretary to the CM, V Umashankar, said that this decision has been taken because due to the present economic conditions, some allottees of HSIIDC are not in a position to execute their projects and intend to surrender the plots. HSIIDC shall amend its refund rules upon surrender/resumption of plots/sites, to provide for a deduction of 10 percent of plot price and interest/ delayed interest paid by the allottees on installments, if any, shall also be forfeited subject to maximum of 10 per cent price of the plot.

He clarified that this will apply to surrender applications made with effect from March 25, 2021. In cases where plots are liable for resumption on account of non-payment of dues of HSIIDC or non-implementation of projects, before resumption of plot, the allottee shall be given an option to authorize HSIIDC to sell the plot in open market through auction, in which case the allottee shall be entitled to receive 50 per cent of the premium earned over and above the allotment price after the deduction of unpaid interest/delayed interest, in addition to amount payable upon resumption as per refund rules.

Another major incentive was announced, whereby HSIIDC will allow rebate of 10 per cent in plot cost, if the entire cost of the plot is paid in lump sum within a period of 45 days from the date of issuance of allotment letter.

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