100 PERCENT WAIVER TO BE GIVEN WITH WAIVER OF 25 PERCENT ON OVERDUE INTEREST, ANNOUNCES MANOHAR LAL

Chandigarh (Face2News)

Haryana Government’s unique initiative of ‘Vivaadon Ka Samadhan’ today turned into Holi bonanza for Industrialists owning Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) plots as the Chief Minister, Sh. Manohar Lal while presiding over a meeting with Industrialists held late evening announced major relief in outstanding payment of interest and penalties.

During the meeting Deputy Chief Minister, Sh. Dushyant Chautala and Minister of State for Labour and Employment Department, Sh. Anoop Dhanak were also present.

The Chief Minister announced that the State Government has decided to introduce a settlement scheme for clearance of entire outstanding dues, which will benefit more than 2250 industrialists. As per the announcement, if the industrialists pay outstanding plot cost and enhanced cost in one go, with waiver of 25 percent on overdue interest and 100 percent 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. 1500 crore. The benefit that is likely to be provided is expected to be Rs. 225 crore, informed the Chief Minister. 

RATIONALIZATION OF EXTENSION FEE STRUCTURE

The Chief Minister also announced rationalization 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 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& 5th year extension fee would be Rs.50 per sq. meter, for B category Estates it will be Rs. 25 per sq. meter and for category C, it will be Rs.10 per sq. meter. 

330 ALLOTTEES TO BE BENEFITTED

The Chief Minister further informed that presently an amount of approx. 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 percent 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 6 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 the industrialists in outstanding extension fee, the Chief Minister 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 Chief Minister further announced that in cases where the allottees had applied for issue of Occupation Certificate (OC) and requirements for issue of Occupation Certificate were found to be complete but OC was not issued on account of default in payments, in such case, now it has been decided that where department had conducted inspection within the period of six months from the date when the allottee had applied for OC, then the 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, said the Chief Minister. This provision of OC will come into force when the applicant clears the outstanding payment.

EXIT ROUTE FROM PRESTIGIOUS PROJECT

Giving a major relief to the industrialist who had invested in 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, then 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. For the purpose of opting Exit Route, the allottee must have started commercial production with investment of at least 25 percent of proposed Fixed Capital Investment.

The Chief Minister also announced rationalization 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 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& 5th year extension fee would be Rs.50 per sq. meter, for B category Estates it will be Rs. 25 per sq. meter and for category C, it will be Rs.10 per sq. meter. 

The Chief Minister also announced rationalisation of refund rules upon surrender/resumption of plots. Divulging more details in this regard, Principal Secretary to the Chief Minister, Sh. 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 instalments, if any, shall also be forfeited subject to maximum of 10 percent 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 percent 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.

The Chief Minister announced another major incentive, whereby, HSIIDC will allow rebate of 10 percent 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.

Term Lending Schemes for HSIIDC

Managing Director, HSIIDC Sh. Anurag Agarwal shared that the Chef Minister had also announced that in case of HSIIDC default cases in term lending, wherein security is available, such cases shall be settled at settlement amount which shall be the outstanding amount on the date the account became doubtful (that is Principal plus interest upto this date) less the amount recovered from the date of the account becoming doubtful plus simple interest from the date it became doubtful till the final payment plus miscellaneous expenses. However, such settlements shall be limited to the value of security available as assessed by the Corporation. The above formula shall also apply in case of loan accounts exceeding Rs. 25.00 lakh in case of HFC, said Sh. Anurag Agarwal.

He said that in such cases additional rebate for making lump sum payment of OTS amount shall be provided as per the time schedule of making the payment. As per this if the payment is made within 30 days time then 3 percent interest rebate on 13.5 percent P.A while calculating simple interest from the date, the loan was classified as doubtful.

Further if the payment is made within 60 days time 2 percent interest rebate on 13.5 percent P.A while calculating simple interest from the date, the loan was classified as doubtful. While, no rebate would be given beyond 60 days. The scheme will be in place till September 30, 2021, he added.