The Yamuna Expressway Industrial Development Authority (Yeida) has enacted a ban on the transfer of industrial and institutional plots unless the owner completes construction and begins operations at the site. This decision follows complaints about unauthorized transfers of plots.
Plot Transfer Restrictions
According to Yeida’s guidelines, allottees are provided a time frame of three to seven years to complete construction and commence operations for the intended purpose of the plot. Post-construction, a functional certificate must be obtained from Yeida, which is issued following an on-site inspection by officials to verify the unit’s functionality.
CEO’s Statement on Misuse of Plot Transfers
Yeida’s chief executive officer, Arun Vir Singh, stated that several complaints had been received, alleging that plot owners, instead of building facilities, were selling their plots for profit. Some were transferring ownership by altering board members, shareholders, or the constitution of the company holding the plot. Singh explained, “These actions are undermining our goal of creating industries that generate jobs and support economic growth. To prevent this, we have decided to impose a ban on plot transfers.”
The new order prohibits changes in the constitution of the company that owns a plot before the building map is approved, the structure is completed, and operations have started.
Rampant Plot Resales
Another Yeida official highlighted how this practice has become widespread, with many plot owners selling their land in the market for a higher price instead of establishing businesses. These sales often occur through changes in the company’s board of directors, shares, or company terms, allowing the owners to evade stamp duty payments.
Government Revenue and Economic Impact
In addition to the loss of stamp duty, Yeida is concerned about the detrimental effect on its efforts to create jobs by allocating plots to industries. The authority also faces significant revenue losses when these companies bypass formal land transfers.
Issues in MedTech Park
This issue has also surfaced in Yeida’s medical devices park project located in Sector 29. In August 2022, Yeida allocated plots to 37 companies intending to establish medical equipment manufacturing units. However, officials reported that only a few companies had begun construction, while others were seeking to transfer ownership.
Yeida’s recent order aims to curb these practices, compelling allottees to develop their plots as intended rather than seeking profits through resales.
