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TIME PERIOD FOR COMMENCEMENT AND
COMPLETION OF CONSTRUCTION
ACTIVITIES AND COMMENCEMENT OF PRODUCTION
ACTIVITY |
1. As a general provision, an allottee would be required to have construction activities completed within a period of two years and production activities started within a period of three years *from the date of possession or from the date of lease deed execution, whichever is earlier.(**see foot note also). 2.
In cases of plot/land
allotments in NCR made on or after 19.5.2006, the allottees
as a specific provision would be required to commence construction activities
within 6 months, complete the construction within 18 months and start
production within 24months, respectively, from, the above dates(* and **). (Inserted
as per the Office Order No.6/2006 dated 24.5.2006). 3. In cases of plot/land allotments made prior to 2.6.2004, the allottees as a specific provision would be required to commence production activities within a period of five years from the above dates(* and **), as per the then provisions of the rules. 4) *The time limit for commencing production/construction
of dwelling unit/commercial establishment shall not apply to khatedar allottees. However, the time period prescribed for
setting up the industry/dwelling unit/commercial establishment as per rule,
shall be binding upon the transferee who has purchased the land from the khatedar allottee. The relevant date will be the date of
transfer. * The above amendmended
proviso shall be available to the existing allottee
khatedars also .
However, the cases already decided as per provisions existing pror to the above amendment shall not be re-opened. ·
(Inserted as per the Office Order No.14/2008 dated 19.11.2008. Further amended and
inserted as per approval of the IDC vide item 5 of its meeting held
on30.7.2010 ).
5. Commencement of construction activities would mean concrete laid in foundation trenches for the structure covering at least 20% of the plot area. 6. For this purpose the completion of construction would mean coverage of atleast 20% of the plot area with a pucca structure where roof has been built up. 7.
In case of the following
industrial units requirement of 20% constructed area with roof under the rule
may be assessed taking into account also the land area being utilized by the allottee as stockyard of raw material and finished goods.
In other words the land area (open or covered) being utilized by such allottees for stockyard purpose may also be included for
the purpose of calculating constructed area in the plot: (a) Stone based industries such as marble/ granite/ kota-stone processing units. (b) Cement based industries such as PCC Poles, Hume Pipes, Concrete Blocks/Curb Stones, Cement Tiles, Cement Gamala & Jali products. (c) Wool Processing Industries. (d) Mineral Grinding Units. (e) Salt Grinding. (f) Fly Ash based Industry. (g) Bio
Mass based Power Plant (h) Herbal Extract Purified Derivatives Bulk
Drugs Projects (i) Dal Mill Udyog
(j) Pesticeds formulation
and ferrous sulphate units 8) In case of IT industries and
all other such set ups where in vertical development has been
permitted in the rules i.e FAR is prescribed, above
condition related to completing/achieving minimum 20% construction of plot
area will be read as completing/achieving minimum 20% of the permitted FAR
instead of the plot area. ·
(Inserted as per the decision taken by IDC vide item 4 on
30.4.2007and item 14 of the meeting held on19.6. 2009 and item 21 9) The allottee shall intimate by registered letter to the
Corporation about the activities after commencement of construction,
completion of construction and commencement of production activities in the
plot which would be recorded subject to the verification by the unit head,
concerned. 10) As a relaxation in the provision at S.No.
(6) of the
rule 21, the Managing Director will be
the cometent authority to consider an industry to
be in production even if 20% construction has not been made at site in view
of totality of circumstances of the project. However, the above
relaxation/dispensation will be subject to the conditions and stipulations: (i) Commercial
production has been started by the
such allottee
with minimum 10% constructed area (ii) The allottee shall complete 20% construction subsequently in
phases as per the requirements of the rules. (iii) No sale/ transfer
of lease hold rights will be permitted till the unit completes the
construction in 20% of the plot area as per Rule-21 of RIICO Disposal of
Rules, 1979. (iv) If 20% construction
parameter of the rule is met within next two years of the commencement of
production in first phase, no retention charges shall be levied. However in
case of failure, to complete the
construction as above , the said deferment
regarding recovery of retention charges shall be treated as
withdrawn and the matter will be dealt as if unit has violated the provisions
of Rule-21 of RIICO Disposal of Land Rules, 1979. (Inserted as per approval of IDC w.r.t
item 16 of its meeting held on18.2.11) |
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**Note
: In cases where lease-deed of plot has
been executed or possession of plot is taken over / deemed, prior to
declaration of area as developed then, the period for commencement of
construction activities, completion of construction activities and
commencement of production activities will be considered from the date of
declaration of area as "Developed". (Amended as per IDC decision taken vide item 3 on 20.05.2004) |
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DELEGATIONS FOR ALLOTMENT OF LAND |
22 (i) |
Allotment shall be made in the following manner: Industrial plots - The Sr. DGM / Sr. RM / RM shall have full powers for making allotments of planned industrial plots of any size in the industrial area for setting up an industry on receiving complete applications as per these rules . The copies of allotment letters shall be sent to all members of DLAC and concerned District Collector for information. However, for technical advice about the project and land requirement, applications may be referred to Head Office. |
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(ii) |
All other type of allotment of plots shall be made by Sr. DGM/Sr. RM/RM as per policy decided by the Corporation from time to time. |
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(Substituted as per
decision taken by IDC vide item 12 of the meeting held on 13.11.2000 and vide
item 21 & 29 of the meeting held on 13.11.2000.) 23* TIME EXTENSIONS in favour of allottees of plots allotted for industrial/ commercial/
residential/ other purposes may be granted as per delegation provided as
hereunder. (Inserted as per IDC
decision taken vide item 4 on 16.9.2003) 23-A :
Time extension for payment of development charges.
On request of the allottee, time extension for payment of balance development charges/ instalment of development charges beyond prescribed period, may be granted on payment of interest at the prescribed rate. Delegations in this regard are as under: (1). Sr. DGM / Sr.
RM/ RM are empowered to grant time extension upto
two years if, plot is located in unsaturated industrial areas and upto one year if, plot is located in saturated industrial
areas, from the scheduled date of
payment of last instalment with interest thereon
for the extended period beyond the due date of payment, irrespective
of increase in rate of development charges of the area. (Amended as per IDC decision vide item 5
on (2). Advisor (Infra) may grant the extension with interest, for a further period of two years and three years in saturated and unsaturated industrial areas respectively. (3). M.D. shall have full powers for granting the extension with interest. 23-B :
Time extension for payment of other dues and removal of breach of terms
and conditions of lease deed / allotment letter.
In case of default in payment of other dues ( economic rent, service charges etc. ) and breach of terms and conditions of lease deed / allotment letter, unit heads shall have full powers to grant the extension for payment of dues with interest / regularisation charges and / or removal of breach in all industrial areas. (Substituted
as per decision taken vide item 8 of the meeting held on 27.12.2002. . Amended as per
item no. 3 of IDC meeting held on 2.11.2010) 23-C Time extension for delay in commencement of
production activity or activity for which the plot is allotted: On the request of plot allottee time extension for commencing the activities may
be granted on payment of retention charges, as under: 1. Unit heads (Sr. DGM / Sr. RM/ RM) are delegated
powers for granting the extension for a maximum period of 2 years at a time
and not exceeding 5 years beyond prescribed period of 3 years or till the industrial area is declared
saturated, whichever is later. 2. Executive Director with retention charges can grant
further extension upto 5 years. 3. M.D. shall have full powers for allowing extension, with retention charges. 4.
The
above provisions shall not apply to those allotment cases where a specific
condition for non levy of retention charges has been stipulated in the
allotment letter itself. 5. In case applications of an NRI or overseas company is pending for FIPB clearance at the time of allotment of plot, extension may be granted, without retention charges till FIPB clearance of his case or for six months beyond the scheduled period, whichever is less. 6. Rate of retention charges will be @ 0.50% of prevailing rate of
development charges per sqm. per
quarter or part thereof. The retention charges shall be calculated at the
rate applicable on the date of payment made to RIICO. (Rate reduced as per
IDC decision taken vide item 3 on 7. If
the allotted plot is transferred prior to commencement of production in plot
then the transferee shall be required to commence production activity as per
schedule allowed to transferor and extension beyond the original schedule may
be granted on payment of retention charges as per rules. However, before issuing
permission for transfer of plot prior to commencement of production activity,
transferee of plot / part plot shall be asked to submit his program for
commencement of production activity and accordingly retention charges shall
be demanded from the transferee. For the plot transferred after commencement
of production there shall be no limitation for re-starting the production
activity. But in case of transfer of part vacant land of the plot, transferee
shall be allowed to commence production within three years from the date of issue of transfer order of
vacant plot. (Period amended as per
IDC decision taken on 20.05.2004) 8. The rules will also apply to the allottees of residential & commercial plots for granting time extension and levying retention charges. However, rate of development charges for computing retention charges shall be 1.5 times of industrial rate prevailing in the area, in case of residential plots and 2 times the prevailing industrial rate for commercial plots. (Inserted as per IDC decision taken vide item 8 on 27.12.2002 and item 22 on
13.11.2000 and office order issued vide No. IPI/P-6/25/iii/1201 and 1922
dated Inserted the above notes (1 to 4) as per approval accorded by IDC vide item 23 of the meeting held on 21.2.98, item 14 dated 16.9.2000, item 8 held on 25.1.2001, item 13 of the meeting held on 10.12.2001 and items 25 & 34 held on 23.9.2002.) 9. In cases of land allotment made after
9.5.2005, time extension for completion of construction / commencement of
production activities would be considered on payment of retention charges at
prescribed rates, as under: (a) Regional Unit Heads, upon receipt of
application from the allottee, may grant the
extension for one year at a time and upto the
maximum for a period of one year in Category-A, Two years in Category-B and
three years in Category-C industrial areas, (categories for this purpose to
be decided with the approval of CMD), from the stipulated date for completion
of construction activities and commencement of production activities (as the
case may be), on payment of retention charges @ 0.75% and 0.5% respectively
of the rate of development charges prevailing in the area per sqm. per quarter delay. In case Regional Unit Head does not grant
such extension applied for, then allottee may
appeal to ED against such refusal within 15 days of the refusal. (b) Further extension beyond that granted
by Regional Unit Head as above may be granted by the ED RIICO in HO on
receipt of application from the allottee for one
year at a time and upto the maximum for a period of
two years in Category-A, three years in Category-B and five years in
Category-C industrial areas, (categories for this purpose to be decided with
the approval of CMD) for completion of construction activities and
commencement of production activities (as the case may be), on payment of
retention charges @ 1% and 0.75% respectively of the rate of development
charges prevailing in the area per sqm. per quarter delay. No further extension beyond the maximum
periods specified here in above would be granted and that at the end of such
extended period if the condition (completion of construction activities/
commencement of production activities) has not been met, then the plot would
be liable for cancellation. In case ED
does not grant extension then allottee may appeal
against such refusal within 15 days of the order of refusal and such appeals
would be put up to IDC for consideration. (c) Unit Heads shall issue notice as wake up call to plot allottee six months before expiry of the stipulated/ extended period for completion of construction activities/ commencement of production activities. The allottee may be advised to either fulfill the condition of completion of construction activities/ commencement of production activities by the stipulated time, or to get the stipulated period extended from competent authority as above with payment of retention charges, failing which the plot would be subject to cancellation. (d) Application for extension would be
decided by the competent authority within a period of 30 days from the
receipt of application. (Inserted
as per IDC decision taken vide item 7 on 25.04.2005) 10. Computation of retention charges would
be done as per the rate prevailing on the date of payment made by the allottee. (Inserted
as per IDC decision taken vide item 6 on 16.3.2001) 23-D : Waiver
/ reduction in interest / retention charges / other charges : The cases of waiver / reduction in
various charges shall be decided by the following committees: (i) Committee - I comprising of Advisor (Infra), Advisor (A&M), FA, all 3 GMs, Addl. G. M. (Civil) and Company Secretary (Convenor) under chairmanship of *the Executive Director shall decide the following cases of waiver / reduction, having financial implication upto Rs. 2,00,000/-: ( a ) Interest on outstanding development charges, economic rent and service charges. ( b ) Retention charges ( c ) Rent / interest on rent of building let out by the Corporation ( d ) Penalty in water bills due to non payment in time. ( e ) Premium/ interest on premium levied upon allottee for sub-letting the premises. ( f ) Penalty on service charges for non-payment of service charges in time. * The Committee will be headed
by the Advisor (Infra) , if the Executive Director
is not posted in the Corporation. The Committee shall have quorum of 3 officers. (ii) Committee-II
comprising of Advisor (Infra), Advisor (A&M), FA (Convenor),
all 3 GMs, AGM (Civil) and Company Secretary under chairmanship of CMD shall
decide the cases of waiver / reduction mentioned in above para
having financial implication more than Rs.
2,00,000/- The Committee shall have quorum of 5 officers. However, CMD may
also exercise the powers without Committee's recommendations in deserving
cases for reasons to be recorded in writing. ( iii ) The Committee-II under chairmanship of CMD shall also decide the following matters / cases irrespective of amount of financial implication involved : ¨ Transfer premium for transfer of part land if the unit is exclusively financed by RIICO by way of term loan and the loanee intends to clear term loan dues under one time settlement by way of sale of part land under Rule 17B. ¨ The cases of charging simple interest on outstanding dues of plot / shed allotted before 30.9.75 and to waive recovery of panel interest or grant rebate in rate of interest on outstanding dues of plot / shed, if allottee is prepared to pay all the outstanding dues in lump sum. ¨ The cases pending in the courts for out of court settlement with parties. CMD is also authorised for giving delegation / special powers to
SRM/RM for deciding the cases in industrial campaigns. (Inserted
as per IDC decisions taken vide item 12 on 23.9. 2002 & amended vide
item15 on 6.6.05). 23-D-1The
retention charges for the period during which the allottee
could not commence or carry the activities on allotted plot in view of court
stay or decision given by a competent court, shall be waived with the
approval of the CMD. (Inserted as
per IDC decision taken vide item 12 on 4.9.2003) * 23-E Exempting allottees
of industrial plots from payment of retention charges for the period during
which plot / shed remained on rent. In cases of industrial allotments where the Corporation has permitted for sub-letting of the plot / shed, in advance, prior to commencement of production activities, retention charges shall not be levied for the period of sub-letting, in case of delay in commencement of production activities by the allottee. * Inserted as per decision taken by IDC vide item 13 of the meeting held on 30.6.2003. |
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