TSIIC registration wall: Sale offers junked on idle plots, coffers bleed

HYDERABAD: The Telangana State Industrial Infrastructure Corporation (TSIIC) has hit a rule hurdle in cancellation of agreements of industrial plots, worth crores of rupees wherein allottees failed to set up units or fulfil other conditions. After identifying 1,300 acres of unused parcels of land and cancelling allotments to many of them, wants to resume land parcels in industrial estates.
However, majority of the allottees were refusing to give up land due to which cancellation of registered sale agreement at the sub-registrar offices with the consent of both parties is not taking place. The Registration Act says unilateral registration cancellation is applicable only for government departments like revenue and forest. Corporations like TSIIC and boards won‘t fall under this category.

An official of TSIIC told TOI, “All these allotments were made before the formation of Telangana. After the new state came into being, we are taking all preventive steps and allotting only to those firms that are capable of setting up units. Regarding the old allotments, we are facing a serious issue of sale agreement cancellation when the firms fail to start industrial units. During allotment, the firm is supposed to pay the fixed land price in industrial estates for plots and sale agreements are executed by TSIIC in favour of the party after collecting the sale consideration value. Therefore, cancellation of unused land allotments is hanging in the balance and we can’t add them to the vacant plot list.”

The official said some industrialists were coming out openly and surrendering the vacant plots and land allotted to them. But the majority of them were reluctant. The (THB) is also facing similar problems. THB vigilance official said,”We have recently written to the registration and stamps department following a writ petition filed against allotment in in the city. We have asked the registration and stamps department to cancel the allotment as it was not according to norms.”

Experts say the Act should be amended to include government-owned corporations and bodies for unilateral cancellation of registered deeds. Registration and stamps department DIG, Ranga Reddy, VV Naidu said, “Only government or a government department can do cancellation of registration unilaterally. As a registration agreement is a contract, both the parties have to agree for cancellation in other cases. Government-owned bodies or corporations are not included in the exemption clause.”

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