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