J&K: Land Allotment of 586 Entities Cancelled as They Fail to Set up Units Under New Scheme

Jammu: The Jammu and Kashmir administration on Thursday issues final notices for cancellation of land allotment to 586 entities which failed to set up units under the much-touted 'new industrial development scheme.

Notices have been issued as these units failed to deposit the land premium and execute lease deed, according to a top official. The step has been taken to provide opportunity to others in the long queue.

The Jammu and Kashmir administration in January 2021 announced a new industrial development scheme (IDS) with a total outlay of Rs 28,400 crore to encourage new investment and take industrial development to the block level.

Approved by the Government of India, the new IDS for was not only meant for  ushering in an era of socio-economic development of the region, but also take development to the block level and far-flung areas of Jammu and Kashmir.

The final notice was issued by Jammu & Kashmir State Industrial Development Corporation (SIDCO) Managing Director Smita Sethi on Thursday. These allotted units include 462 in Kashmir valley and 124 in Jammu region. These units were granted 500 to 600 acres in dozens of industrial estates set up by J&K government.

Of these 423 units were given allotment of lands by J&K Small Scale Industries Development Corporation Limited (SICOP) and 163 by SIDCO.

"As per record 586 allottees (of Industrial units) have not given any response and are liable for cancellation in terms of Jammu & Kashmir Industrial Land Allotment Policy 2021-30 despite repeated notices", Sethi said in final and show-cause notice for cancellation of the allotment order.

The notice further said that as per the directions of administrative department of Industries and Commerce on November 4, 2022, a final notice of 15 days is being served to all the (389) allottees from the date of issuance of this notice, who did not respond to earlier notices, to deposit the payment and complete formalities.

"Failing which it shall be presumed that they have nothing to say in their defence and the allotment order shall be deemed to have been cancelled or withdrawn ab-initio, if no convincing response is received during this period", Sethi said.

She further said that in accordance procedural guideline to the Jammu & Kashmir industrial land allotment policy, 30 days’ notice was served upon the unit holders, who failed to deposit the payment and complete the requisite formalities.

"Additionally a show cause notice of seven days and final notice of five days was also served through email. They again failed to deposit the due amount and complete the necessary formalities", MD said.

"There are 4,500 applications in queue for grant of allotment in setting up units in J&K. If they don't respond, there are others in the queue", Sethi told PTI.

These units are bringing an investment of over Rs 3,000 crores and generating a job market of 7,000.

As per the notice SIDCO and SICOP issued land allotments or letter of intent (LOIs) in terms of Industrial Policy 2021-30 in compliance to the approval accorded by high level land allotment committee in its first meeting held on July 1, 2021 & December 30, 2021.

As per terms and conditions of allotment orders, the allottees were required to deposit the land premium, execute lease deed and complete other formalities within 60 days’ time frame from the date of issuance of said allotment order. However, some unit holders have failed to deposit the due amount & complete the necessary formalities within the stipulated time period, Sethi said.

Jammu & Kashmir Land Allotment Policy, 2021-30 provides land allotment process and  envisages that in case of non-execution of lease deed, including non-payment of payable premium, even after the expiry of notice period, the land allotment shall be cancelled by the concerned industrial development corporation immediately, she said.

As per the procedural guidelines, allotment policy provide that in case of failure on the part of allottees to make total payment towards premium within stipulated time from the date of allotment letter,violation of any condition of the lease deed, failure to come into production within stipulated time, among others, the concerned estates officer shall immediately take necessary action for determination of the lease deed and eviction of the allottees under the said act and rules made there under.

Jammu and Kashmir has received investment proposals worth Rs 31,000 crore and has notified a new Central sector scheme worth Rs 28,400 crore which is likely to provide employment to over 4.5 lakh people, the Rajya Sabha was informed in December last year. MoS Home Nityanand Rai said that the government has received investment proposals worth approximately Rs 31,000 crore.