Disposal of Land Rule - RIICO

production activity. But in case of transfer of part vacant land of the plot,
transferee shall be allowed to commence production within three years from
the date of issue of transfer order of vacant plot. (Period amended as per IDC
decision taken on 20.05.2004)
8. The rules will also apply to the allottees of residential & commercial plots for
granting time extension and levying retention charges. However, rate of
development charges for computing retention charges shall be 1.5 times of
industrial rate prevailing in the area, in case of residential plots and 2 times
the prevailing industrial rate for commercial plots.
(Inserted as per IDC decision taken vide item 8 on 27.12.2002 and item 22 on 13.11.2000 and
office order issued vide No. IPI/P-6/25/iii/1201 and 1922 dated 24th November 2001 and 24th
February 2003 after approval of M.D.
Inserted the above notes (1 to 4) as per approval accorded by IDC vide item 23 of the meeting
held on 21.2.98, item 14 dated 16.9.2000, item 8 held on 25.1.2001, item 13 of the meeting
held on 10.12.2001 and items 25 & 34 held on 23.9.2002.)
9. However, in cases of land allotment made after 9.5.2005 time extension for
completion of construction / commencement of production activities would
be considered on payment of retention charges at prescribed rates, as under:
(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