In a relief to homebuyers facing financial distress due to coronavirus pandemic, the state government has decided to extend the one-time settlement (OTS) scheme for allottees till September 30.
The development gains significance as it comes amid soaring number of allottees defaulting on payments resulting in revenue loss to the housing board and development authorities.
In a communique to the housing board and various development authorities, the UP housing and urban planning department has laid down detailed amendments effected in the OTS scheme which came into being on February 7 this year.
The step came after directives from chief minister Yogi Adityanath to the housing department to come up with an OTS scheme for those defaulting on payment of instalments.
The government has decided not to impose any penalty on delayed payment of instalments for the period between March 1 and August 31. Besides, the government has also advised the development authorities and housing board to charge simple interest for this six-month period.
The new terms and conditions alter the duration in which the application will have to be disposed of. While earlier, the application was to be disposed of in three months, under new terms, the housing board and development authorities would do so in two months only. Those who continue to default would face action.
In the communique, principal secretary, housing, Deepak Kumar said following coronavirus pandemic, the UP chapter of Confederation of Real Estate Developers Association of India (CREDAI) had made representations on May 4 and 8 seeking extension of OTS scheme.
Following this, the department constituted a committee headed by the housing commissioner to look into the issue. Subsequently, the housing commissioner sought the opinion of development authorities of Lucknow, Ghaziabad, Gorakhpur, Prayagraj, Agra, Kanpur, Varanasi, Moradabad and Meerut.
