The allottees of Residential, Commercial/Industrial who sell/transfer their lease property outside the blood relation for which lessor's permission is required which is being given subject to charging of 50% Unearned Increase in the market value of the plot as per lease deed terms. In the following cases the unearned increase is not being attracted :
- Conversion of partnership firm into a private limited firm comprising original partners as Directors.
- Change from Pvt. Ltd. Co. to Public Ltd. Co.
- In case of addition, deletion or substitution of partners in a firm or directors and conversion of sole proprietorship firm or partnership concern into private limited company when change in constitution is intimated, for approval by the DDA, within one year from the date of purchase of plot in auction. This will not apply in case of plot obtained by the party by way of allotment.
The cases in which unearned increase is being charged are as under :
- Addition of outsider not falling within the family members.
- Substitution of the original allottee/auction purchaser.
- 50% unearned increase is charged in respect of proportionate share of the plot parting with by way of addition, deletion or substitution of partner.
- In the cases where a private limited company/public limited company separately floats a separate new company although directors may be the same.
The interest @ prevailing at the time of application on the unearned increase is charged from the date of receipt of application till the payment made by the allottee/company.
As per terms and conditions of lease deed the lessee is not supposed to use the premises other than specified in the lease deed without the prior permission of the lessor. As and when a breach of misuse of the premises is noted a show-cause notice is sent to the lessee asking him to remove the breach within 30 days from the date of notice. The period can be extended to 60 days if the lessee gives cogent reasons. The process of re-entry (determination of lease deed) is initiated if the lessee neither remove the breach nor send any communication. However, on receipt of intimation from the allottee indicating the specific date of removal of breach the premises is inspected again and the charges for the breach are being recovered in the name of misuse charges. The formula for calculation of charges for the misuse of the property has been approved by the M.O.U.D.
||Size of plot X 13.9 X Period/100
The market rates for various colonies likely to be adopted in the above formula are being finalized by the Land costing Wing for each year.
A decision to charge interest @ 12.5% p.a. if the delay is 30 days or less and @ 15% per annum for the period exceeding 30 days has been taken if the payment of misuse charges is not received within 30 days from the date of issue of demand letter of misuse charges.