Housing development authorities in Uttar Pradesh are set to introduce a one-time settlement scheme (OTS scheme) aimed at providing defaulters with an opportunity to resolve their outstanding debts. The cabinet has sanctioned a plan designed to enhance the real estate sector and recover amounts owed by buyers who have failed to make payments to agencies such as the Lucknow Development Authority and the Kanpur Development Authority.
This initiative will be accessible for settling dues that have accumulated following the acquisition of residential, commercial, mixed-use, and institutional properties, among other categories. Currently, there are 18,982 default cases pending with the authorities and various government agencies. Officials have indicated that this scheme could potentially unlock up to Rs 12,500 crore that remains unsettled by the defaulters. “In the best-case scenario, we would be able to generate that amount through the one-time settlement,” stated an official. Authorities will have the discretion to waive certain charges and penalties associated with delayed compliance and approvals.
Only simple interest will be imposed on the defaulters, the official emphasized, underscoring a significant advantage of the scheme, which will be valid for three months following its launch. Notifications will be dispatched to the mobile numbers and email addresses of the defaulters in the upcoming days.
