GIDC rules on sub-leasing simplified

By | December 28, 2016

The earlier regulations prohibited transfer of plots with partial building construction, but the new rules have removed the clause.

For those instances where transfer of plots were permitted, GIDC used to levy a penalty of 10% per year for the entire plot area transferred based on the prevailing rate per square metre. The new regulations do not stipulate that the fine has to be charged as per the plot area.

The amended regulations do come with a pinch as GIDC has increased the fees, which will be charged for subleasing, by 2%. The guidelines issued in 2014 had put a cap on sub-leasing of plots at 15 years which the chairman of GIDC could approve. This limit has also been done away with, allowing companies to take a long-term view on setting up projects in the state.

Another regulation that GIDC has tweaked is the area that an entrepreneur has to compulsorily utilize. According to the 2014 regulations, the person to whom the plot has been allotted has to utilize 30% of the FAR of the plot allotted within five years from the date of possession. The new regulations state eliminate the stress on the FAR and say that 30% of the land allotted has to be utilized, managing director of GIDC Umeshchandra Joshi said.