In a major policy decision intended to give relief to owners of residential and commercial plots, Haryana Urban Development Authority (HUDA) has done away with the upper limit of time within which an allottee is required to complete the minimum 25% construction on a HUDA plot.
The existing policy
The new policy initiative that comes into effect from April 12, 2013, will replace the HUDA policy where the allottee was required to complete the construction of a residential or commercial plot within two years from the date of offer of possession. A provision for further extension up to 13 years (beyond the initial two-year period) was given by HUDA on payment of extension fee under the existing policy. Thus, the allottee was allowed to raise the construction within 15 years (2+13 years) from the date of offer of possession failing which the plot was resumed (taken back in possession by HUDA). HUDA officials said that a sizeable number of allottees across Haryana were unable to complete the minimum required construction for obtaining the occupation certificate. Resultantly, HUDA resumed most such plots.
The new policy
Under the new policy, the allottee will get respite from the time cap imposed by HUDA for raising the construction on a residential or commercial plot. Now, the allottee who is unable to undertake the construction will pay a revised extension fee for 12 years. If the allottee is still not able to undertake construction, a further extension in period of construction will be allowed on payment of extension fee at double the rates of the previous year. However, this will not apply to plot sizes of upto 100 square metres for which the rates will remain the same as in the 12th year, officials said. For commercial plots, the extension fee will be 2-3 times of the rates charged for residential plots.
HUDA officials said that a rebate of 50% rebate in the extension fee will be allowed for plots allotted to defence and paramilitary personnel. The existing rebate in extension fee to women and widows will continue to remain in force.
While the revised rates of extension fee will now become applicable, the allottees will not be required to pay any differential amount for the extension fee already paid by them before April 12.
Who will benefit and who will not
The policy will apply to all such cases where resumption orders have been passed due to non-construction but the allottee or re-allottee have challenged the resumption orders and the litigation was pending. In such cases, the estate officer will inform the court concerned to dispose of the appeal in terms of the new extension policy. Officials said the plots that have been resumed after December 31, 2007, but the allottee has not challenged the resumption order will be restored by the estate officer after prior approval of the zonal administrator. Armed forces officers serving in remote areas and allottees who though completed the construction but could not apply for grant of completion certificate within the stipulated period will also benefit from the new policy, officials said.
The new policy, however, will not be applicable where litigation has attained finality and the resumption orders have been upheld. The policy will also not be applicable where the allottee or re-allottee has executed special power of attorney or general power of attorney after the resumption order was passed.