The Haryana government has thrown a significant lifeline to real estate developers facing financial difficulties. In a major decision aimed at revitalizing the sector and recovering pending dues, the state has announced a substantial extension of its One-Time Settlement (OTS) scheme for defaulting builders.
Scheme Gets a New Lease of Life
Originally introduced to provide a structured path for regularization and recovery, the OTS scheme will now remain open for applications until March 31, 2025. This extension grants builders and colonizers an additional window to settle their outstanding liabilities with the Town and Country Planning Department (DTCP). The move is expected to unlock stalled projects and inject liquidity into the state's real estate market.
The decision was formally approved by the state cabinet, chaired by Chief Minister Manohar Lal Khattar. The cabinet's nod underscores the administration's commitment to resolving long-pending issues that have plagued the construction industry, often leading to delays for homebuyers and financial stress for developers.
Financial Relief and Recovery Mechanism
The core objective of the extended OTS scheme is twofold: to offer financial relief to builders struggling with legacy dues and to ensure the government recovers a portion of its pending revenue. Under the scheme's provisions, defaulting parties can avail a substantial waiver on the interest and penalties accrued on their outstanding amounts.
By opting for this settlement, builders can regularize their projects and obtain necessary clearances that were previously withheld due to non-payment. This is anticipated to have a cascading positive effect, potentially accelerating the completion of numerous residential and commercial projects across Haryana.
The scheme covers defaults related to external development charges (EDC), license fees, and other statutory payments. It provides a final opportunity for developers to clean up their financial slate with the authorities and move forward without the burden of compounding penalties.
Implications for the Real Estate Sector
Industry experts have welcomed the extension, viewing it as a pragmatic step to address a persistent bottleneck. The real estate sector in Haryana, particularly in the National Capital Region (NCR), has faced challenges due to regulatory changes and economic cycles. This scheme is seen as a crucial intervention to ease those pressures.
For homebuyers, the move could signal progress on delayed projects, as builders who settle their dues are likely to resume construction activity with renewed vigor. It also aims to enhance transparency and compliance within the industry, fostering a more stable investment environment.
The government, on its part, stands to recover significant funds that can be redirected towards urban infrastructure and development works. The OTS scheme represents a balanced approach, prioritizing both economic recovery and administrative efficiency.
With the new deadline of March 2025 now in place, builders are urged to assess their eligibility and apply for the scheme promptly to benefit from its relief provisions and contribute to the overall health of Haryana's real estate landscape.
