Allottees With Unfinished Properties in Gurgaon will Feel Impact of New HUDA Policy

Allottees of unfinished or semi completed properties in Gurgaon have been given an ultimatum by the Haryana Urban Development Authority. Under this ultimatum, allottees of properties that are semi built or are vacant land, have until the March of 2019 to complete fifty percent of the work required or face penalties by the HUDA. If the allottees of these 1,060 properties (who were alloted land by HUDA) fail to comply with the orders of the HUDA they will face a hefty fine when they try to gain an extension of one year's time to construct their property.

The building that is expected to stand in such plots has already been approved by the HUDA yet work on the project has either not begun or has been abandoned less than half way.

As per publicly released information, the HUDA gave this order yesterday and the order applies to areas that fall under the jurisdiction of the Estate Officer-1. Should those who own such incomplete property on HUDA plots in the region mentioned not comply with the order, they should be ready to brace for action from HUDA.

A Change in Policy

A new policy has been introduced which mandates that construction must be completed on at least fifty percent of the land that has been granted permission to bear a building by HUDA. Furthermore according to this new policy, occupation certificates for such unfinished properties must be granted by March of 2019. In case the allottees fail to comply with this new policy, they will be liable to pay an extension fee at high rates; this has been prescribed within HUDA's extension policy.

According to a Sub-Divisional Engineer with HUDA, the mandatory construction must be completed by March 2019, or approximately within 2 years, otherwise the allottees will pay a fine. The accounts and administrative departments of the HUDA both have been provided a copy of the new notice and HUDA will begin to automatically charge allottees in case the Occupancy Certificates have not been awarded to allottees by March of 2019.

The 1,060 allottees who own GurgaonReal estate in the concerned region have already been issued notices however a further 4,000 allottees have been discovered to be in violation of the policy and they too may soon receive notices from HUDA.

What Led to This Change in Policy

An amendment was made to HUDA policy in January of this year which made it compulsory to have completed at least half of the approved construction, on HUDA plots by March 2019, regardless of whether the approved construction be institutional residential, or commercial in nature.

The major reason for the introduction of this new policy is that authorities discovered that they were suffering a huge loss in tax revenues due to large number of empty HUDA plots, which, if they had a built construction on, would have paid a higher rate of tax to the authorities.

Conclusion

If allottees fail to build half the construction by March 2019, they will have to pay a hefty extension fee if they wish to retain ownership of the plot. However if allottees were allotted the land fifteen years before March 2019 and the allottees have still not built half the construction on the land by March 2019 then they will forfeit ownership of their residential property in Gurgaon and their plot as both will be reclaimed HUDA.