Department of Industries 
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Basically on-polluting types, less labor oriented and Hi-tech industries are being encouraged in Delhi.
As per order issued on 09/01/1998, construction of building is to be allowed within seven Years after realization of composition charges having three years as grace period. Two more years have also been allowed for construction from the date of issue of execution of lease deed whichever is later.
Yes, within family - no unearned increase. Outside family 50% unearned increase will be charged, even if family/proprietor/partner changes to Pvt.Ltd.Co. /Ltd. Co. then also 50% unearned increase is chargeable.
Yes, built-up industrial plot can be converted to free-hold under the free-hold scheme.
Yes, provided the new trade is allowed under the Master Plan of Delhi. Only intimation to the Department is required. This is to be incorporated in the lease deed also.
Yes, new entrepreneurs can purchase the allotted plot from original allottees subject to fulfillment of some conditions.
The details of scheme is given on website i.e. http://www.industries.delhigovt.nic.in
Main conditions of the Lease Deed are following:
- The allot tee is liable to pay lease rent@ 25% of the premium amount after Five years of the allotment.
- Allot tee can make any change in the constitution only after seeking prior approval from the Lesser. Prior permission is also required in case of sale/transfer of property but only after10 years of the Lease deed.
- The allotment is for industrial activity only and premises should be used for manufacturing purpose only and commercial/go down or show room usages are not allowed and there activity may result in cancellation of the allotment.
- The allot tee should not violate the building plan as saNational Capital Territoryioned by MCD. Violations of building bye-laws also attract provision of cancellation of allotment.
Such transfers are allowed after 10 years from the lease deed and charging 50% of the unearned increase of the value of the plot. Transfer within the 'family’ does not attract unearned increase 'Family as per guidelines', in relation to the Lessee(s) means the individual, the wife or husband as the case may be, father, brother, major son,unmarried daughter/sister and minor children of the Lessee(s).
The conversion of Hire-Purchase scheme is only applicable to Flatted Factories Complex, Okhla.
The rates are notified by the lesser from time to time. The rates as notified for the period 01/04/1993 to 31/03/1996 are the following: Okhla Industrial Estate Badli Industrial Estate Patparganj Industrial Estate Rs.1350/- Rs.650/- Rs.1500/- To calculate the present rate 20% enhancement per year over these rates will be applicable. In case of rental property, change in constitution is allowed Rs. 30/- per sq.ft. Plus Rs.10/- per sq.ft. Are charged for regularization.
The allotted premises can be taken on rental basis in any confirming Industrial Area for permissible manufacturing activities in that particular industrial area. For this the following are the requirement:- Application on the prescribed format duly filled in by the original allot tee shall be submitted to this office. A copy of the site plan indicating the subletting area. Constitution and trade of the sub-lettee firm. An undertaking from the allottees that the Sublette area is less than 50% of the plot/shed. An undertaking from the allot tee that there is no subletting in the plot/shed prior to this. Minimum area for subletting is 250 sq.ft. But not more than three tenants are allowed in one building. The Department charges a fee of Rs.1/- per sq.ft. Per month from the allot tee, sister concern are treated as tenants. Units involved in IT & IT enable service are exempted from subletting charges. Users of these services will not be treated as Sublette.
No, the Hire Purchase will be applicable in cases where cancellation order has been withdrawn.
Mutation can be done in favor of the legal heir/heirs, if on getting registered will/succession certificate/letter of Administration from competent court of law. Heir/heirs also have to furnish Indemnity Bond and affidavit as defined in the Land Management Guidelines, Industrial Manual, 1991.
Yes, the allotted plot can be mortgaged to any financial institution like Nationalized Banks, Financial institutions owned by Govt. with the prior permission of the Department. For granting mortgage permission the requirements are: Confirmation from the bank/institution from which loan is to be availed. Affidavit for no availing mortgage permission earlier or relinquishment as the case may be, certificate on letter head from the allot tee for non violation of any or one of the lease agreement, details of manufacturing activity of their units.
A plot can be restored after removal the cause of cancellation/violations like House-construction, non- functional, encroachment, unauthorized subletting/sale/Transfer, commercial activities, etc. after realization of unearned increase/Restoration charges.