Disposal of Land Rule - RIICO

9) The allottee shall intimate by registered letter to the Corporation about the activities after
commencement of construction, completion of construction and commencement of production activities in
the plot. Commencement of production will be recorded by the unit head based on one of the following
documents, if requisite minimum constructin has been completed as stipulated above in this rule:
(i) in case of units which are liable to deposit Sales Tax, CST or VAT – the date on which the unit
makes the first payment of Sales Tax, CST or VAT will be taken as date of commencement of
production.
(ii) in case of units not paying Sales Tax, CST or VAT – the date any other tax paid for the first time
to the State Government will taken as date of commencement of production.
.
(iii) for those sectors which do not pay any taxes to the State Government in respect of investment to
which subsidy/exemption is linked – the date of bill of commercial transaction (receipt of deposit of
fee/charges etc.) will be taken as date of commencement of production.
Note: However, in those cases where preferential allotment has been made under Rule 3(W),
‘commencement of production’ will be recorded as above, only after verifying that investment of the
envisaged amount as per the project submitted by the allottee at the time of approval of allotment by
the constituted Committee has been made ,
10) As a relaxation in the provision at S.No. (6) of the rule 21, the Managing Director will be the
cometent authority to consider an industry to be in production even if 20% construction has not
been made at site in view of totality of circumstances of the project. However, the above
relaxation/dispensation will be subject to the conditions and stipulations:
(i) Commercial production has been started by the such allottee with minimum 10%
constructed area
(ii) The allottee shall complete 20% construction subsequently in phases as per the
requirements of the rules.
(iii) No sale/ transfer of lease hold rights will be permitted till the unit completes the
construction in 20% of the plot area as per Rule-21 of RIICO Disposal of Rules, 1979.
(iv) If 20% construction parameter of the rule is met within next two years of the
commencement of production in first phase, no retention charges shall be levied. However
in case of failure, to complete the construction as above , the said deferment regarding
recovery of retention charges shall be treated as withdrawn and the matter will be dealt as
if unit has violated the provisions of Rule-21 of RIICO Disposal of Land Rules, 1979.
(Inserted as per approval of IDC w.r.t item 16 of its meeting held on18.2.11)
Note : In cases of plot/land allotments made during 13.11.2000 to 31.3.2001, 24.11.2001 to
31.3.2002 and 24.2.2003 to 31.3.2003 wherein land allotment was made without any
specific condition on the allottee for completing construction and commencing
production activity on the allotted land/plot within the stipulated period would now be
required to complete construction and commencing production activity within a period
of 3 years in non NCR Region and within 2 years in NCR Region from 1.6.2012.
(inserted as per item 5&18 of the meeting held on 29.5.2012)
Note : In cases where lease-deed of plot has been executed or possession of plot is
taken over / deemed, prior to declaration of area as developed then, the period
for commencement of construction activities, completion of construction
activities and commencement of production activities will be considered from
the date of declaration of area as "Developed".
(Amended as per IDC decision taken vide item 3 on 20.05.2004)