O.O.No. 31 /2020, Revision of Penal Interest, Initial Deposit, Processing Fee and Water Drawal Penalty
SIPCOT Office Order Number 31 of 2020, dated 31 July 2020, was issued under the signature of Managing Director J. Kumaragurubaran following approval by the Board of SIPCOT. Effective from 21 July 2020, it reduces penal interest on defaulted payments, increases the initial deposit and processing fee, and imposes a penalty and disconnection measures for specified unauthorised water drawal.
What the office order covers
SIPCOT Office Order Number 31 of 2020 applies to SIPCOT Industrial Complexes, Industrial Parks and Growth Centres. The Board of SIPCOT approved the changes at its meeting held on 21 July 2020, and the office order states that they take effect from that date.
The changes affect parties making defaulted payments or paying the initial deposit and processing fee. SIPCOT allottees may also face enforcement action if they draw water in the unauthorised manner described in the office order.
Revised payment terms
SIPCOT Office Order Number 31 of 2020 makes the following revisions:
- Penal interest on all defaulted payments, charged for the period of default, is reduced from 15.5 per cent per annum to 12 per cent per annum.
- The initial deposit per acre is increased from Rs.5,000 to Rs.10,000.
- The non-refundable processing fee is increased from Rs.5,000 to Rs.10,000.
The source does not provide further details about how the deposit or processing fee is collected, or whether any exceptions apply.
Unauthorised water drawal
SIPCOT Office Order Number 31 of 2020 imposes a penalty of INR 5,00,000 on an allottee found drawing water from a borewell, open well or tube well sunk on private land adjacent to a SIPCOT Industrial Park, Complex or Growth Centre. The provision applies where water is drawn through a pipeline that unauthorisedly trespasses into SIPCOT premises.
Key enforcement measures are:
- The INR 5,00,000 penalty applies for each incidence.
- Water supply will be disconnected.
- The water line trespassing into SIPCOT premises will be severed.
Who should check the changes
SIPCOT industrial land allottees should check whether they have any defaulted payments and apply the revised annual penal interest rate from the effective date stated in the office order. Parties required to pay an initial deposit or non-refundable processing fee should account for the revised amounts. Allottees using water sources on neighbouring private land should verify that no pipeline unauthorisedly enters SIPCOT premises.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
What penal interest applies to defaulted SIPCOT payments?
SIPCOT Office Order Number 31 of 2020 reduces penal interest from 15.5 per cent per annum to 12 per cent per annum for the period of default.
How much are the revised initial deposit and processing fee?
The initial deposit is Rs.10,000 per acre, increased from Rs.5,000. The non-refundable processing fee is Rs.10,000, also increased from Rs.5,000.
What happens if an allottee draws water through an unauthorised pipeline entering SIPCOT land?
A penalty of INR 5,00,000 is levied for each incidence. Water supply will be disconnected and the trespassing water line will be severed.
When did the revised terms take effect?
SIPCOT Office Order Number 31 of 2020 states that the changes came into effect on 21 July 2020.
