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The Prayagraj Development Authority (PDA) has announced a major change to its policy governing delayed residential allotments, opting to discontinue the practice of offering alternate plots as compensation for undelivered land and instead refund the amounts paid by homebuyers along with interest. An official advertisement stated that this shift will affect roughly 8,000 allottees in several delayed residential schemes, where buyers who have not taken possession will receive a refund with interest under established rules, or may choose to adjust their paid amount towards a fresh allotment in another scheme. The land swap option will be retained only if the original land is free of legal or possession issues. The move follows long-standing disputes over possession and aims to provide a more consistent and transparent resolution process for affected plot buyers.
The Prayagraj Development Authority (PDA) has issued a new directive to end its long-standing land swap policy for undelivered plots and introduce a refund mechanism with interest for affected homebuyers, officials said earlier this week. The policy change was announced in an official PDA advertisement and is expected to impact approximately 8,000 allottees across several residential projects where possession of plots has been delayed for years. Advertisement
Under the revised approach, plot buyers who have not taken possession of their plots will no longer be offered alternate land in lieu of their original allotment. Instead, the PDA will refund the amount previously paid by the allottee along with applicable interest, in line with established rules governing refunds on delayed delivery. Buyers will also have the option to use the refunded amount toward a fresh allotment in other residential schemes operated by the authority, should they wish to reinvest rather than withdraw entirely.
The revised policy affects numerous long-delayed residential schemes, including Dev Prayag, Jhalwa, Neem Sarai, Ganga Darshan, Telierganj, Shantipuram and Kalindipuram, where hundreds of allottees have remained without possession despite having paid in full years ago. The PDA emphasised that alternate plots will only be considered where the original land is clear of legal impediments and possession issues; where disputes persist, the refund with interest will be the sole remedy.
PDA Vice-Chairperson Rishiraj said the policy revision is part of the broader Sangam Mission initiative to bring clarity and fairness to the allotment process and resolve long-term grievances related to possession delays. He noted that earlier, some allottees had been allotted alternate plots, but the new unified procedure aims to avoid piecemeal solutions and ensure a legally consistent framework for all affected buyers.
The authority has urged allottees to contact PDA offices to initiate the refund process or discuss options for applying their paid amount to a new residential allocation. Officials said the revised policy is intended to streamline resolution of longstanding allotment issues, foster transparency and provide financial relief to genuine plot buyers caught up in protracted possession delays.
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