Disposal of Land Rules - RIICO

(a) Regional Unit Heads, upon receipt of application from the allottee, may
grant the extension for one year at a time and upto the maximum for a
period of one year in Category-A, Two years in Category-B and three
years in Category-C industrial areas, (categories for this purpose to be
decided with the approval of CMD), from the stipulated date for
completion of construction activities and commencement of production
activities (as the case may be), on payment of retention charges @ 0.75%
and 0.5% respectively of the rate of development charges prevailing in the
area per sqm. per quarter delay. In case Regional Unit Head does not
grant such extension applied for, then allottee may appeal to ED against
such refusal within 15 days of the refusal.
(b) Further extension beyond that granted by Regional Unit Head as above
may be granted by the ED RIICO in HO on receipt of application from
the allottee for one year at a time and upto the maximum for a period of
two years in Category-A, three years in Category-B and five years in
Category-C industrial areas, (categories for this purpose to be decided
with the approval of CMD) for completion of construction activities and
commencement of production activities (as the case may be), on payment
of retention charges @ 1% and 0.75% respectively of the rate of
development charges prevailing in the area per sqm. per quarter delay. No
further extension beyond the maximum periods specified here in above
would be granted and that at the end of such extended period if the
condition (completion of construction activities/ commencement of
production activities) has not been met, then the plot would be liable for
cancellation. In case ED does not grant extension then allottee may
appeal against such refusal within 15 days of the order of refusal and such
appeals would be put up to IDC for consideration.
(c) Unit Heads shall issue notice as wake up call to plot allottee six months
before expiry of the stipulated/ extended period for completion of
construction activities/ commencement of production activities. The
allottee may be advised to either fulfill the condition of completion of
construction activities/ commencement of production activities by the
stipulated time, or to get the stipulated period extended from competent
authority as above with payment of retention charges, failing which the
plot would be subject to cancellation.
(d) Application for extension would be decided by the competent authority
within a period of 30 days from the receipt of application.
(Inserted as per IDC decision taken vide item 7 on 25.04.2005)
10. Computation of retention charges would be done as per the rate prevailing on
the date of payment made by the allottee. (Inserted as per IDC decision taken vide
item 6 on 16.3.2001)
23-D. Waiver / reduction in interest / retention charges / other charges:
The cases of waiver / reduction in various charges shall be decided by the
following committees: