Chandigarh, March 31: In a major reprieve to the defaultingallottees of all urban development authorities, with the cut-off date ofDecember 31, 2013, the Punjab Cabinet on Wednesday gave the nod to the PunjabUrban Development Authorities Amnesty Scheme-2021 for recovery of outstandinginstallments.
According to a spokesperson of the Chief Minister’s Office,the allottees, who were issued allotment letters based on draw of lots orauction or through some other process but have defaulted in payment of one ormore installments due after December 31, 2013, may deposit the principalamount, along with scheme rate of interest, within three months from the dateof notification under the amnesty scheme.
The cases where allotments have been cancelled due todefault in installments or there is litigation on this count, where instalmentswere due after December 31, 2013, may also avail this scheme. These cases wouldbe treated as if the cancellation was not done, and the forfeited amount wouldbe treated as credited to the allottees’ accounts on the date of forfeiture.However, the scheme is not applicable where physical possession has been takenover by an authority.
Notably, a sum of Rs. 700 crore is outstanding againstvarious allotees of residential plots, flats, commercial plots, institutionalplots, industrial plots and chunk sites sold through draw of lots and auctions.As per prevalent instructions, penalty is imposed if a person defaults inpayment of due installment on time, which varies from 3% to 5% per annum, inaddition to scheme rate of interest depending on delay in terms of years. Thispenalty translates into net interest rate of up to 17% per annum, which is veryhigh.