Haryana extends relief to COVID-19-hit realty industry

Chandigarh, Jul 6 () The Haryana government on Monday decided to grant moratorium to the realty industry on compliances and interest payments for seven months to September 30 for all existing projects.

Moratorium period shall imply that such intervening period from March 1, to September 30, will be considered as "zero period", an official statement said after the state cabinet meeting.

The permission or payment cases for which moratorium will be allowed include Letter of Intent for CLU (Change of Land Use) as well as licence cases, licence and CLU validity, license renewal and CLU extension, payment of fee and charges, bank guarantee and deed of declaration as per Haryana Apartment Ownership Act, 1983. In another decision, the state cabinet also gave approval to bring Ordinances to amend the Industrial Disputes Act, 1947 and the Factories Act, 1948 to empower the Haryana government to grant exemption from certain provisions of the Acts for a period of 1000 days to a new establishment or undertaking or any class of new establishments.

"The draft of the Industrial Disputes (Haryana Amendment) Ordinance 2020 that will be brought before the Council of Minister in its the next meeting shall help industry to adapt and rise to new economic realities swiftly.

This Ordinance will also help in increasing investment and providing employment opportunities to the workforce," said an official statement after the cabinet meeting.

The statement said the State Government is keen to provide concessions to the new establishment or new undertaking or class of new establishments for next 1,000 days to help them get their business on track by relaxing certain provisions of the labour laws for the purpose of increasing investment and providing employment opportunities to the workers in today's competitive era.

The Cabinet, while touching upon the Ordinance to be brought to amend the Factories Act, said the State Government has decided to provide concessions to the new factories for 1,000 days to help them get their business on track by relaxing certain provisions of the labour laws for the purpose of increasing investment and providing employment opportunities to the workers in today's competitive era. The Haryana Cabinet also gave approval for one-time settlement scheme to enable recovery of long pending dues on account of External Development Charges (EDC) called "Samadhan se Vikas". It is modeled on the Central scheme of "Vivad se Vishwas-2020".

The scheme shall be applicable in respect of full amount outstanding on account of the EDC as well as interest and penal interest. This was announced in the State Budget 2020-21 by the Chief Minister, who also holds the Finance portfolio, on February 28. In case a colonizer deposits 100 percent of the outstanding principal amount against EDC as well as 25 percent of the accumulated interest and penal interest, within a period of six months from the date of notification of this scheme, the balance 75 percent of the accumulated interest and penal interest shall be waived.

In case a colonizer deposits at least 50 percent of the outstanding principal amount against EDC as well as 50 percent of the accumulated interest and penal interest, within a period of six months from the date of notification of this scheme, the balance 50 percent of the accumulated interest and penal interest shall be waived.

The remaining 50 percent of outstanding principal amount shall be recoverable in four six-monthly instalments along with interest at the rate of 8 percent per annum on the delayed period and an additional 2 percent interest per annum on the default period.

The first six months period for deposit of first installment shall start from the date of deposit of 50 percent principal plus 50 percent interest and penal interest component. SUN VSD MR MR