UP to launch OTS scheme for property defaulters

Lucknow: Housing development authorities in UP will launch a one-time settlement scheme to give defaulters a chance to clear their debts. The cabinet has approved a scheme to boost the real estate sector and recover dues from buyers who have defaulted on payments to agencies like Lucknow Development Authority and Kanpur Development Authority.The scheme would be available to settle dues that accrued after the purchase of residential, commercial, mixed-use, and institutional properties, among other segments. A total of 18,982 default cases are pending with the authorities and other govt agencies. Officials said the scheme has the potential to unlock up to Rs 12,500 crore not settled by the defaulters. "In the best-case scenario, we would be able to make that much money through the OTS," said an official.Authorities will be free to waive part of the charges and penalties for delayed compliance and approvals. Only simple interest would be levied on the defaulters, the officer added, highlighting a key benefit of the scheme, which will remain effective for 3 months after the launch. Notifications will be sent to the mobile numbers and email IDs of the defaulters in the coming days.