The Indian Express                18.04.2013

HUDA hikes extension rates on vacant plots

Those who had been allotted land by the Haryana Urban Development
Authority (HUDA) but have failed to start construction within the
stipulated period of two years, of the land being handed over, will now
have to shell out an additional sum as the urban body hiked the penalty
rates for the violation on Monday. The hike will pinch the pockets
harder if there has been inactivity on the land for 12 years.

On an average, for a 10-marla plot, an additional penalty of Rs
1,045 will be levied in the first six years from the expiry of the
two-year term. The earlier penalty was Rs 4,180 for the first three year
term and Rs 7,315 for the period between the 4th and 6th years.

Allottees who haven’t started construction for 7-9 years, will
now have to shell out an additional Rs 2,090 to the existing penalty,
while violators of the 10 – 12 year time-frame will have to pay an
additional Rs 5,225 on a 10-marla plot. The existing extension fee for
the 7-9 year bracket and the 10-12 year group (for a 10-marla plot) had
been Rs 10,450 and Rs 15,675 respectively in their earlier policy. The
hike will become steeper after the 12th year. For the 10-marla piece of
land, the extension fee in the 13th year will be Rs 41,800 while it will
be Rs 83,600 in the 14th year and inactivity for 15 years will attract
an extension fee of Rs 1,67,200. This is a steep hike when compared to
the earlier policy where the extension fee for violators in the 13-15
year bracket was a mere Rs 16,720 for the 10-marla plot.

As per the new policy, while from the 1st year to 12th, the rates
will remain between Rs 25 and 100, after that, further extension in the
period of construction will be allowed only on payment of extension
fee, double the rates of the previous year. This, however, will not
apply to plot sizes up to 100 sq metre, for which the rates will remain
the same as in the 12th year unless any further revision is made by
HUDA. According to the policy, in case of commercial sites up to
two-storey and more buildings, the rates for extension fee would be 2 to
3 times the rates of residential plots.

Haryana urban body likely to continue with 10% surcharge

The Haryana Urban Development Authority (HUDA) is likely to
continue with the 10 percent surcharge on the pending penalty fee, that
is levied on those who fail to begin construction on land allotted to
them by the government, within the stipulated two years.

According to officials the surcharge is likely to continue to
ensure timely collection of penal fee that is charged against the
violators. They add that the surcharge will continue to remain at 10
percent of the pending amount.

On Monday, HUDA revised its policy on the issue by deleting the
resumption clause and revising extension rates. It, however, made no
mention of the surcharge.

Officials of the urban branch at HUDA said that the lack of
clarity on the surcharge in the new policy that has been issued has been
brought to the notice of higher level officers. They add that the body
will continue with the surcharge and fresh orders will be issued on
this.

As per the earlier policy, a surcharge of 10 per cent was levied
on those who failed to pay the extension fee within the first year of
penal period. The 10 per cent is calculated on the pending fee.
Officials added that the new orders will also specify whether HUDA will
continue with providing the rebate on making the payment of extension
fee within the first three months. “It is likely that HUDA will
continue to provide the rebate to early payments of extension fee,” a
senior official said. HUDA administrator Surjeet Singh said that in case
officials bring it to his notice that there is a lack of clarity in
the order, then the urban body will issue a fresh one.

In the policy issued on Monday, HUDA specified that there will be
a 50 percent rebate in the extension fee to the plots allotted to
defence personnel and the extension in rebate will continue for women
and widows.