GLADA resumes 16 sites; notice issued to 107 allottees

As reported by Kuldip Bhatia in The Tribune on dated 08 August 2012
Source: The Tribune, Chandigarh, India - Ludhiana Stories

GLADA has initiated action against defaulters who failed to pay the balance amount of consideration money of commercial and residential sites sold through an auction. After being rapped by the audit department for failure to recover default amount, which had crossed a whopping Rs 50 crore by March-end, GLADA has resumed 15 commercial sites and a residential plot.

Information provided by GLADA under the Right to Information Act to the Council of RTI Activists reveals that cancellation notices had been issued to buyers of six SCOs in Dhandari Kalan, Phase 4; eight SCOs in Dugri Urban Estate Phase II; and a residential plot for the failure to pay the balance 75 per cent cost.

The notices say that under the powers vested by Section 45(3) of the Punjab Regional Town Planning and Development Act, the allotment of property, along with structure raised on the site, if any, is liable to be cancelled and 10 per cent of the total consideration amount of the property is forfeited.

The buyers owe over Rs 12.63 crore and most of them had failed to pay even a single half-yearly instalment after making a payment of 10 per cent as earnest money and another 15 per cent of the bid amount.

Notices for cancellation had also been issued to another 107 allottees who had defaulted in payment of instalments.

RTI activists said the time allowed for personal appearance and clearing dues in the final notices served on 107 allottees had lapsed months ago, but GLADA had taken no further action.