Noida: Ban on transfer, sale of plots allotted for industries

The Noida authority has banned the transfer or sale of plots that were given for setting up an industry, but are lying vacant and not being used for the said purpose, as it causes losses to the city, in terms of business, and defeats the purpose of allotment

The Noida authority has banned the transfer or sale of plots that were given for setting up an industry, but are lying vacant and not being used for the said purpose, as it causes losses to the city, in terms of business, and defeats the purpose of allotment.

Earlier, the authority used to charge 4% of total property cost, according to the prevailing allotment rate, as transfer fee on industrial property if the owner set up some business on the plot. (Representative photo/HT archive)

The authority took this decision in its 203rd board meeting that headed by chairperson Sanjiv Mittal and attended by officials from Gautam Budh Nagar.

Earlier, the authority used to charge 4% of total property cost, according to the prevailing allotment rate, as transfer fee on industrial property if the owner set up some business on the plot. Around 10% of the total property cost was charged as transfer fee if the plot owner did not start any business and kept the plot vacant.

Now, as per the new order, the authority has banned the transfer of plots, which are vacant and the owner has not started any business activity, for which the land was allotted.

“We have stopped transfer of non-functional industrial plots because if there is no business on a plot that we have allotted for industrial purposes, we cannot generate employment opportunities in the city. The move may encourage all industrial plot owners to set up businesses,” said Ritu Maheshwari, CEO of the Noida authority.

There are around 10,000 industrial plots in the city, most of which are lying vacant. However, the authority has no data of such plots, which are lying vacant after allotment. Some of the industrial plot owners do not set up industries as they want to sell the plot when they get a better rate in the market, said officials.

“Vacant plots in the middle of a sector is a nuisance to residents living nearby because it not results in hygienic issues but also becomes an eyesore,” said Vipin Malhan, president of Noida Entrepreneur association.

Meanwhile, the authority has also fixed the transfer fee for commercial plots in the range of 2.5% to 5% of total property cost. Earlier, it was 10% and even higher for some properties.