Transfer of property: Administration allows new GPA holders to pay in instalments

Earlier,if a (General Power of Attorney) GPA holder applied for conversion of the Industrial plot into commercial,on paying the first installment he was permitted to pay the rest of the amount in different installments. However,if the plot was transferred to another person,the new owner was made to pay the entire amount in a lumpsum at once.

UT Finance Secretary Sanjay Kumar said that various Industries Associations had argued that the money of the Administration is safer in the hands of the owner. They had further contended that in the prevailing economic meltdown,the new owners who get the plot converted find it difficult to pay the amount at once.

For Kumar,the change of policy will do away with the discrimination between GPA holders and new owners. After the amendments,the new owner will also be given an option to pay the balance amount of conversion fee in lumpsum or in installments by way of fresh post-dated cheques payable on the same due dates in lieu of the cheques previously submitted by the actual GPA holder.

Further,the new owner will also have to submit an indemnity bond equivalent to the balance conversion fee. In case of any default in the payment of balance conversion fee,the property will be subject to resumption,apart from any other liabilities.

The terms and conditions on which conversion was allowed by the competent authority will continue to be binding on the new owner and the installments will bear interest at a rate decided by the designated authority.