Disposal of Land Rule - RIICO

LEVY OF ONE TIME ECONOMIC RENT
FORM"F-1"
At present economic rent is payable annually before 31st July every year, after that interest at
prescribed rate is to be charged from 1st April of the year. However, the entrepreneurs may opt
for one time deposition of the economic rent in lump sum on the following conditions:
(i) that, he has cleared all the outstanding dues of economic rent upto the date of option.
(ii) that, he deposits a lump sum amount equal to the economic rent of 10 years calculated
as per the rates applicable / prevailing on the date of option.
(iii) that, payment of economic rent in lump sum will not affect the nature of the title over
the plot i.e. the plot would remain always on lease.
(iv) that, he gives an undertaking to the effect that :
(a) RIICO shall continue to have full right to cancel the allotment of land on account of
any violation of the terms & conditions of the lease deed.
(b) he, as allottee would not demand for refund of economic rent deposited in lump
sum in the event of plot being cancelled on account of violation of lease deed
conditions or voluntary surrender of lease.
As regards fresh cases of allotments also the allottee would have the option for one time
lumpsum deposit of economic rent.
(*Inserted as per decision taken by IDC vide item 9 of the meeting held on 17.6.94)