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GUIDELINES/PROCEDURE FOR ALLOTMENT OF INDUSTRIAL PLOTS

 

1.       Application

 

          Interested entrepreneur has to apply for industrial plots  on prescribed form in duplicate. He
should clearly refer the advertisement against which the application has been made. The application form can be purchased from the location mentioned in the advertisement. The application form is also available on website or with any other office specified in the advertisement however, if application is made on application forms obtained from elsewhere,  draft towards its payment should be enclosed additionally. The cost of form is Rs. 500 ( in favour of SIDA, payable at satharia/jaunpur)

          Along with application following documents duly authenticated should be submitted in duplicate.

(a)     project profile duly signed by the applicant.

(b)     Application fee and earnest money as desired in the advertisement or as detailed in the application  form. This has to be deposited through Demand Draft (drawn in favour of SIDA and payable at satharia/jaunpur). At present the structure of charges are-

 

Application Fee (Non refundable)

         

          Rs. 2000/- upto 1 Acre

          Rs. 5000/- from 1 Acre to 5 Acres

          Rs. 10000/- above 5 Acres     

 

Earnest Money-   10% of the total cost of the plot on the advertised rates/ rate prevailing at the time of application.       

 

(C)     Proposed land utilisation plan in duplicate, duly signed by the applicant. As per current policy, the allottee should cover minimum 30% of allotted area.

(D)    Documents pertaining to status of application (in duplicate) who could be individual, proprietorship firm, partnership firm, registered society, private limited company or public limited company. In case of :-

(a)     Partnership Firm Copy of partnership deed duly notarised
(b)     Registered Society (i)  Certificate of Registration.
  (ii) Bye-laws of Society certified by Secretary/Chairman of society
    (iii) List of members with their addresses
(c)      Private limited Company (i)  Certificate of Incorporation
  (ii)  Memorandum and Article of Association
  (iii)  List of shareholders and directors alongwith their shareholding authenticated by CA.
(d)     Public Limited Company  (i)  Certificate of incorporation
  (ii) Memorandum and articles of association
  (iii) List of directors and their shareholding authenticated by CA. 

 

2.       Approval of Allotment

 

          The applicants shall be interviewed by allotment committee approved by Chief Executive Officer SIDA. For interview the applicant shall be clearly asked to bring documents substantiating financial strength, technical expertise, past experience to substantiate their averments.  

 

3.       Issue of Allotment Letter

 

          Allotment letter of the plot shall be issued on the prescribed proforma within 15 days from the date of approval by the competent authority.

 

4.       Reservation Money -

 

          The rate of reservation money shall be 25%  of the total premium of plot. The allottee will be required to pay the same after adjusting the earnest money already paid, within period as specified in the allotment letter which normally is 30 days from the date of allotment. If the due date so specified is a public holiday the next working day shall be last date for payment of reservation money.

          The non-payment of reservation money renders the allotment incomplete, hence if such an allotment is cancelled restoration of allotment cannot be considered.

 

5.       Recovery of balance premium -

 

          The balance 75% of the premium amount shall be recovered in twelve/ten half yearly equated installments alongwith interest as prevalent on the date of allotment on diminishing balance of the premium.  The first such installment of premium shall be payable on subsequent 1st January or 1st July after expiry of six months from the date of allotment. 

 

Explanation -

 

          If the allotment letter is issued on 1st July or thereafter but on or before 31st December, the first installment of premium and interest shall fall due for payment on 1st July of subsequent year and likewise.

 

6.       Execution of lease deed -

 

          Lease deed of the plot shall be executed in favour of the allottee after deposit of reservation money and submission of requisite stamp paper and other papers. The allottees are required to get lease deed executed within 90 days from the date of allotment. Calculation of stamp duty shall be made in accordance with state policy after consultation with district authorities if required. However, the allottees shall confirm the stamp duty from the concerned sub Registrar so as to avoid any confusion/ future complication. On the date of execution of lease deed the allottee should not be a defaulter.

 

7.       Possession of Plots -

 

          (i)      The Date of possession of plots shall be fixed by the Manager (Property, Law/Planning) after registration of Lease Deed it self.

          (ii)     The date so fixed shall be intimated to the lessee alongwith the second copy of the lease deed and the concerned Junior Engineer for necessary action on their part through a letter .

          (iii)    Effort shall be made to hand over possession within 15 days of the registration of the lessee deed as for as practicable.

          (iv)    If the lessee fails to take possession even after issuance of two letters, legal notice for the same may be issued and action may be taken accordingly.

 

 8.       Approval of Building Plans -

 

          Before raising the constructions after taking over the possession of plot, the allottees are required to seek approval on building plans for which they have to submit the plans to the Authority. The building plans must be in conformity with the byelaws of SIDA. The building plans must accompany the fees prescribed under various heads and the documents required. Allottee should not be a defaulter in payment of dues.

 

9.       Change of project-

 

          If the allottee/lessee desires to change his project to any other industrial project at any stage after allotment then, he can do so by submitting the following documents.

          (1)     Project report in duplicate duly signed by allottee.

          (2)     An affidavit duly signed and notarized to the effect that

(i)      New project will require a covered area of 30% of the plot area.

(ii)     New project will not discharge liquid effluent exceeding the discharge of old project.

(iii)    New project will not discharge any obnoxious gaseous effluent to the detriment of surrounding units/area.

(iv)    Allottee will arrange to obtain NOC from the pollution control Board within six calendar months or start of production which ever is earlier and submit a copy there of to the authority.

(v)     Allottee will submit a provisional SSI registration/IEM to SIA within 90 days of its application.

 

10.     Addition of products-

 

          If the allottee/lessee has implemented the project for which the land was allotted and desires to manufacture additional products/implement additional project under the same constitution, then he can do so by submitting the following documents.

          (1)     Project report in duplicate duly signed by allottee.

          (2)     An affidavit duly signed and notarized to the effect that

(i)      Constitution/ownership is the same as given in license/lease.

(ii)     Additional project/items will not lead to discharge of any liquid effluent.

(iii)    Additional project/items will not discharge any obnoxious gaseous effluent to the detriment of surrounding units.

(iv)    The allottee will obtain NOC from Pollution Control Board and submit the same within 6 months or start of production whichever is earlier.

(v)     The allottee will obtain revised SSI registration/IEM and submit the same with 90 days of its application.

(vi)    The total covered area on the plot shall not exceed the permissible limits.

 

11.     Transfer of lease deed to financial institution-

 

          In case the lease deed is required by any financial institution or any other bank (even private/foreign) recognized by RBI with a request to permit equitable mortgage the same shall be sent to them, permitting creation of equitable mortgage provided-

(i)      The request has been made in writing by the concerned financial institution/bank as well as by the lessee. The financial institution shall clearly mention that a loan has been sanctioned for the project approved by the authority specifying quantum of sanctioned loan and they need it to secure their loan amount, and

(ii)     The financial institution undertakes to pay the balance premium, if any, of the plot under question alongwith interest till receipt of the payment. Alternatively, if the financial institution is ready to pay only premium portion, then the allottee will be required to pay 3 months advance interest on the balance premium, if the financial institution does not undertake to pay the premium/interest as above, the same shall be paid by the allottee beforehand, and

(iii)    In case it is proposed to send the lease deed to any bank for mortgage, full payment of balance premium alongwith outstanding dues shall be paid before hand either by bank or  allottee.

(iv)    The allottee has deposited duplicate copy of registered lease deed with the authority. In case the plot is full paid, the lease deed may be sent to financial institution for securing its interest against other facilities provided to the allottee like cash credit limit, working capital etc.  

(v)     The loan has been sanctioned for the existing/proposed unit on the plot.

(vi)    The loan has been sanctioned to allottee and not to his/her sister firm/concern/sublettee.

          In no case, lease deed shall be transferred to any financial institution if the allottee is defaulter in making the payment of dues of the authority.

 

12.     Guideline for cancellation-

 

          Plots are leased with the specific purpose of establishment of unit covering a minimum area as stipulated in lease /undertaken by allottee while applying for the allotment. There are other conditions as elaborated in lease deed which the lessee has to abide with. Allotment of plots allotted for industrial units/Housing can be cancelled, lease can be terminated on making default of payment or utilisation or on violation of any condition of allotment /lease by allottee or lessee.

          Cancellation can be made on the three grounds namely non-payment of dues, non-utilisation and breach of conditions of allotment/lease.

 

13.     Transfer/ reconstitution of industrial plots-

 

          As per the conditions of lease no lessee can transfer the allotted plot without prior permission of authority. The terms used in regard to Transfer/Reconstitution are defined as below-

 

(a)     Vacant plot-

          The plot will be treated vacant only in following cases :-

(i)      There is no construction on plot.

(ii)     If the covered area on plot is less than 5% though the unit might have been in production.

(iii)    If the covered area is even more than 5% but the unit has neither been in production nor is in running condition.

Note- After transfer the status of plot will revert back to the status of 'Vacant'. Although the constructions carried out by previous allottee shall be deemed to be of transferee yet the transferee shall have to establish his own unit and start production to achieve the 'non-vacant' status.

 

(b)     Factory Building-

          Means the work shed for manufacturing process plus an additional constructed area up to a maximum of 10% of the total area of the plot for the purpose of offices, stores, godown, and other service/utilities as per plan approved by the competent authority.

 

(c)      Covered area-

          Means and includes factory building covered by roof and open constructions like chimney, water tank, boiler as required in the process of production in the said unit.

 

 

 

(d)     Running Unit-

          Means a unit which is/was established on non-vacant plot and manufacturing the product mentioned in the application for allotment of the plot in question or thereafter permitted by the authority on the plot.

 

(e)      Transfer levy-

          Per sq.m@ 15% of the rate of premium prevailing on the date of issuances of transfer approval letter will be charged, as applicable. While calculating the transfer levy the locational charges of a particular plot will not be considered and only basic premium will be taken into account.

 

(f)      Transfer-

          Means disposal of controlling interest in the venture by the existing allottee. Authority charges transfer levy while approving cases of 'transfer'.

 

Explanation-

 

1.       Controlling interest in case of partnership firm- the original partners at the time of allotment/ transfer to maintain 51% stake in profit, loss and capital of the firm either together or severely for the period specified in the relevant clause. While calculating the above, stakes of family members covered in the definition of family shall be added.

2.       Controlling interest in case of company- the original shareholders at the time of allotment/ transfer tot maintain 51% shareholding either together or severely. While calculating the percentage the shares owned by FIs, Public and other neutral bodies should be deducted from the total shareholding. While calculating the above, shares of holding companies (in which the shareholders hold majority) and family members covered in the definition of family shall be added.

3.       Controlling interest in case of society- Original members and their family members to remain in majority.

 

Exception-

 

1.       Transfer amongst family members or to holding/group companies.

2.       Transfer by operation of law, in case of death, inheritance.

 

14.     Reconstitution-

         

          Reconstitution means the change of constitution of the allottee from original constitution to other form of Enterprise which may be from proprietor to partnership (or vice- versa), proprietor to company limited by shares (or vice-versa), partnership to company limited by shares (or vice-versa), shall be allowed without levy provided the controlling interest of original (i.e. at the time of allotment) of proprietor, partners, Shareholders is retained. In case the controlling interest is not retained by the original constituents (i.e. proprietor, partners or shareholders), such change shall be considered as case of transfer and be dealt with as per provisions of transfer on payment of transfer levy. 

 

 
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