O.O.No. 22/2024, Office Order on No Objection Certificates for Mortgage of Leasehold Rights

What the office order governs

The State Industries Promotion Corporation of Tamil Nadu Limited Office Order No. 22/2024 governs applications by an allottee for permission to mortgage leasehold rights over an allotted plot to a bank or financial institution. The No Objection Certificate supports financial assistance for implementing the allottee's project.

The procedure is intended to reduce delays caused by missing information and the time taken to obtain reports from Project Officers. Applications are to be received and processed online.

Documents required

An allottee applying under Office Order No. 22/2024 must provide:

• The sanction letter from the bank or banks, including the terms and conditions. The clause and page identifying the SIPCOT property to be mortgaged must be highlighted.
• A No Due Certificate or No Objection Certificate from any existing bank or financial institution.
• A list of directors and the current shareholding pattern, including any holding company and ownership up to the individual level, certified by a Chartered Accountant or CPA within 90 days before the application.
• A renewed Letter of Acceptance from MEPZ for a Special Economic Zone unit.
• A commercial invoice showing operation, dated within 90 days before the application, where the allottee is functioning under the allotment terms or an extension granted by the State Industries Promotion Corporation of Tamil Nadu Limited.

Processing and possible closure

Office Order No. 22/2024 requires the Project Officer to check the application and notify the allottee of missing documents or unpaid dues within three days. The allottee is given seven days from receiving that communication to supply the documents and clear the dues. Follow-up continues, but the Project Officer may recommend closure after 15 days from the application date if the requirements remain unmet.

The Project Officer must also provide a certified No Due Certificate and the latest monthly status report. The Head Office checks whether there has been a change in management and may request additional particulars.

• If required additional information is not supplied within seven days, the application may be closed.
• If there is a change in management, the allottee may be asked to pay transfer fees. The No Objection Certificate application will be closed, and a fresh application is required after resolving the management change.

Stated timelines

For a complete application requiring no additional particulars, the table indicates possible issue by T+8 days. Where additional information is required, the stated timeline is T+18 days. For an initially incomplete application, the table states T+20 days or T+23 days, subject to receipt of all required documents and particulars.