LDA moves to clear 5,000 unsold assets, crack down on ‘big’ defaulters

The initiative aims to clear around 5,000 unsold commercial properties. The scheme has been in effect since April 1 this year.

In a push to revive its stagnant real estate portfolio and recover mounting dues, Lucknow Development Authority (LDA) has launched timebound discounts on decades-old unsold commercial properties and strict action against property defaulters who owe the authority over ₹460 crore in dues.

LDA moves to clear 5,000 unsold assets, crack down on ‘big’ defaulters

The initiative aims to clear around 5,000 unsold commercial properties. The scheme has been in effect since April 1 this year.

LDA secretary Vivek Srivastava called it a necessary move to revive public interest in long-abandoned properties. “This is the first time LDA is offering discounts on commercial properties. We are trying to push the sale of properties that have remained unsold for years. Through this scheme, genuine buyers can benefit, and the authority can generate revenue that’s been blocked for decades,” he said.

The discount applies to commercial property under the said performa where out of 100 per cent of the paid amount, the discount would be given on the 75 per cent of the value, confirmed LDA finance controller Deepak Singh.

A 6% discount will be given if the payment is made within 45 days, 5% within 60 days, 4% within 75 days, and 3% within 90 days. These offers will apply strictly to commercial properties sold through auction, said a senior official.

However, no auction has been conducted since April 1, and the scheme is yet to benefit any buyer. “The system is ready; now the auctions must begin. Once the process kicks off, we expect good participation,” a senior LDA official said.

Meanwhile, amid efforts to sell its inventory, LDA is also taking strict action against defaulters, particularly those who have not completed payments or registration of properties over the past decade. Officials said that since 2016, dues from various categories of allottees have touched ₹460 crore, with the majority coming from commercial plots larger than 500 square metres.

“These are not small defaulters. Many of them have been running commercial establishments without completing the required payments or getting their properties registered,” said an official. “We have started internal reviews and are classifying defaulters by the nature and seriousness of their violation. This time, no one will be spared.”

According to LDA data, around 1,250 flats allotted under several housing schemes are under scrutiny. In many cases, 80% to 90% of the total amount has been paid, but the registry remains incomplete, or the required documentation has not been submitted.

“Full payment within the prescribed timeframe is mandatory under LDA rules. Non-compliance gives us the authority to cancel allotments,” the LDA secretary said.

He added that the authority’s broader aim is to streamline finances, plug revenue leakages, and ensure stricter compliance from allottees. “We are prioritising high-value commercial properties where the default amount is significant. From here on, the focus will be on accountability,” he said.