Circular No. 51/2020, Extension Period for Remittance of Plot Cost and Differential Plot Cost
The State Industries Promotion Corporation of Tamilnadu Limited issued Circular No. 51/2020 on 28 July 2020, granting specified industrial plot allottees until 31 July 2020 to pay plot cost or differential plot cost without interest. The temporary relief applied where the relevant payment due date fell on or after 24 March 2020.
What the circular does
Circular No. 51/2020 of the State Industries Promotion Corporation of Tamilnadu Limited provided temporary payment relief following representations from allottees affected by COVID 19. Based on a decision taken at the 492nd Board Meeting on 21 July 2020, eligible allottees were allowed to make specified payments by 31 July 2020 without interest.
The relief covered plot cost payments and differential plot cost payments. It did not state that the amount payable was reduced or waived.
Who was eligible
The State Industries Promotion Corporation of Tamilnadu Limited identified three groups of allottees who could use the extension:
- Allottees who had paid 50 per cent of the plot cost within the first 90 days, where their extended due date fell on or after 24 March 2020.
- Allotments where the normal 90 day payment due date fell on or after 24 March 2020.
- Allottees required to pay differential plot cost, where the due date fell on or after 24 March 2020.
For each eligible group, the payment deadline was extended only up to 31 July 2020 without interest.
Differential plot cost
Circular No. 51/2020 explains that an allottee was normally given 90 days from the date of sanction to pay differential plot cost. It also records that interest at 12 per cent was levied when payment was made after the end of those 90 days, calculated until the date of actual payment.
For differential plot cost due on or after 24 March 2020, the circular permitted payment up to 31 July 2020 without interest.
Relevance for buyers and allottees
Circular No. 51/2020 concerned payment obligations of existing State Industries Promotion Corporation of Tamilnadu Limited plot allottees during a specific COVID 19 relief period. A person checking historical payment records should confirm whether the original or extended due date fell on or after 24 March 2020, whether 50 per cent of the plot cost had been paid within the first 90 days where applicable, and whether payment was completed by 31 July 2020.
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
Did the circular waive any part of the plot cost?
No. Circular No. 51/2020 extended the payment deadline for eligible allottees without charging interest. It did not state that any part of the plot cost was waived.
Who qualified for the interest free extension on plot cost?
The extension covered allottees who had paid 50 per cent of the plot cost within the first 90 days and whose extended due date fell on or after 24 March 2020. It also covered allotments whose normal 90 day due date fell on or after that date.
Was differential plot cost included in the relief?
Yes. Allottees whose differential plot cost due date fell on or after 24 March 2020 could pay it by 31 July 2020 without interest.
What was the normal interest treatment for late differential plot cost?
The circular states that differential plot cost was normally payable within 90 days from the date of sanction. Interest at 12 per cent was levied after those 90 days until the date of actual payment.
