In a major reprieve to the defaulting allottees of all urban development authorities, with the cut-off date of December 31, 2013, the Punjab Cabinet on Wednesday gave the nod to the Punjab Urban Development Authorities Amnesty Scheme-2021 for recovery of outstanding installments.
According to a spokesperson of the Chief Minister’s Office, the allottees, who were issued allotment letters based on draw of lots or auction or through some other process but have defaulted in payment of one or more installments due after December 31, 2013, may deposit the principal amount, along with scheme rate of interest, within three months from the date of notification under the amnesty scheme.
The cases where allotments have been cancelled due to default in installments or there is litigation on this count, where instalments were due after December 31, 2013, may also avail this scheme. These cases would be treated as if the cancellation was not done, and the forfeited amount would be treated as credited to the allottees’ accounts on the date of forfeiture. However, the scheme is not applicable where physical possession has been taken over by an authority.
Notably, a sum of Rs. 700 crore is outstanding against various allotees of residential plots, flats, commercial plots, institutional plots, industrial plots and chunk sites sold through draw of lots and auctions. As per prevalent instructions, penalty is imposed if a person defaults in payment of due installment on time, which varies from 3% to 5% per annum, in addition to scheme rate of interest depending on delay in terms of years. This penalty translates into net interest rate of up to 17% per annum, which is very high.