The Yamuna Expressway Industrial Development Authority (Yeida) has decided to ban the transfer of plots meant for industrial and institutional usage before the owner completes the structure and starts operations at the site.
The move comes after Yeida chief executive officer Arun Vir Singh got complaints that such plots transfers were happening.
According to the rules, Yeida gives each allottee a time of aorund three to seven years to build a structure and then start using it for the purpose it was allotted. After that, the owner has to obtain a functional certificate from the authority. The certificate is given only after the authorityโs team carries out a site inspection to check if the unit is functional or not, said officials.
โWe have got several complaints alleging that owners of plots have not built anything and are selling it to another company to make a profit. To transfer ownership, the companies change the board members, shareholders or change the constitution of the company that owns the plot. Such deals are putting paid to the authorityโs plans to allot to plots to set up industries so as to create jobs and fuel economy. Therefore, we have decided to ban the transfer of plots,โ said CEO Singh.
The Yeida CEO said they have issued an order on Thursday saying that changes in the constitution of the company owning the plot will not be allowed before the owner gets the building map approved, complete the building, and starts operations.
โThe practice of buying a plot from the authority, and then selling it in the market at a higher price is rampant because some people who want to make profit without establishing the business, transfer it through changes in the companyโs board of directors, shares or changes in terms of the company. And in this process, they do not pay the stamp duty,โ said another Yeida official, asking not to be named.
Yeida wants to stop this transfer because the government is also losing out revenue in stamp duty that is not paid at the time of transfer of the company owning the plot. And the bigger loss is that the authority gets defeated in its purpose of creating jobs.
The authority was also worried that some owners in the medical devices park project in Sector 29 were trying to sell the land parcels instead of establishing a business.
Yeida, on August 22, 2022, allotted plots to 37 companies, which wanted to establish manufacturing units to produce different varieties of medical equipment at their respective facilities. But after the allotment was done, only a few companies started the construction of their manufacturing unit. The remaining want to transfer their ownership to a new entity, said officials.
โBut now after the new order, they will not be able to do so. The authority wants them to establish units, instead of making easy money by selling the plot,โ said a Yeida official.
