The Yamuna Expressway Industrial Development Authority (Yeida) has implemented a ban on transferring industrial and institutional plots unless the owner has completed construction and begun operations on the site. This decision was prompted by multiple complaints about the premature sale of plots.
Restrictions on Plot Transfers
Yeida regulations require that allottees complete the construction of their structures and begin operations within a period of three to seven years. Once the facility is operational, the owner must obtain a functional certificate from the authority, which is only granted after an inspection by Yeida officials confirms that the site is fully functional.
CEO’s Concerns Over Misuse
Yeida CEO Arun Vir Singh has acknowledged that complaints were received regarding owners selling their plots without developing them. Many of these sales are conducted by altering the company’s board members, shareholders, or constitution. Singh remarked, “This behavior is undermining our plans to promote industries that generate employment and support the economy. As a result, we have decided to stop the transfer of plots.”
The new directive states that companies are not allowed to make changes to their constitution or ownership before getting their building plans approved, completing construction, and starting operations on the plot.
Rising Plot Resale Practices
A Yeida official revealed that reselling plots for profit, without setting up the intended businesses, has become a common practice. These transactions are usually facilitated through changes in company structure, allowing owners to avoid paying stamp duty.
Impact on Government Revenue and Industrial Growth
Yeida is concerned about the impact this practice is having on its efforts to foster job creation and industrial development. In addition to the loss of stamp duty, the authority’s goal of promoting economic growth through the allocation of plots is being compromised.
MedTech Park Plot Resales
This issue has also arisen within Yeida’s medical devices park in Sector 29. In August 2022, 37 plots were allocated to companies aiming to manufacture medical equipment. However, few companies have begun construction, with many seeking to transfer their plots instead.
The new order ensures that these plot owners must establish the intended businesses rather than simply profiting from selling the land.