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The Uttar Pradesh government has approved the One Time Settlement (OTS-2026) scheme aimed at helping property allottees clear long-pending dues owed to development authorities, the Uttar Pradesh Housing and Development Council, and other special area development bodies. The initiative seeks to address nearly 18,982 default cases involving unpaid property payments estimated at around INR 11,848 crore. The scheme will apply to residential, commercial, institutional and auction-allotted properties, as well as pending map approval cases with additional dues of about INR 1,482 crore. Under the framework, penalty interest on outstanding amounts will be waived and only simple interest will be charged, while defaulters will be allowed to clear liabilities through instalments within a defined settlement window. Authorities expect the programme to help regularise stalled allotments, improve revenue recovery for development agencies, and resolve legacy property payment disputes across the state.
The Uttar Pradesh government has approved the implementation of the One Time Settlement (OTS-2026) scheme to enable property allottees with pending dues to regularise their properties while helping development authorities recover large outstanding payments linked to residential, commercial and institutional land allotments across the state. Advertisement
The scheme was cleared during a cabinet meeting chaired by Chief Minister Yogi Adityanath earlier this week. It will apply to properties allotted by development authorities, the Uttar Pradesh Housing and Development Council, and other special area development authorities. Officials indicated that the initiative is intended to resolve long-pending payment disputes and improve financial recovery for government-run urban development agencies.
Government data shows that approximately 18,982 property allotment cases across the state remain in default, with unpaid dues estimated at around INR 11,848.21 crore. In addition, 545 cases linked to building map approvals carry outstanding payments of about INR 1,482.10 crore. Authorities said the OTS scheme aims to address these unresolved liabilities through a structured settlement mechanism.
Under the scheme, penalty interest on outstanding payments will be fully waived, while only simple interest will be charged on the principal amount. The policy is intended to make settlement of long-pending dues financially feasible for property allottees who have accumulated large interest liabilities over time. Officials stated that the scheme will remain open for three months from its launch, during which eligible allottees can submit applications and begin the settlement process.
The settlement framework also allows payments to be made in instalments depending on the size of the outstanding liability. For dues of up to INR 50 lakh, one-third of the payable amount must be deposited within 30 days of the demand letter, while the remaining amount can be paid in three monthly instalments. In cases where the payable amount exceeds INR 50 lakh, the remaining balance after the initial deposit may be paid in instalments over a period of up to six months.
Officials stated that the scheme will cover properties allotted through both auction and direct allocation processes, including those allotted to government institutions, schools, charitable organisations and other entities. Authorities also plan to notify eligible defaulters through email, SMS and official communications to encourage participation in the programme.
The initiative follows directions issued earlier by the state leadership to develop a practical settlement mechanism for resolving old allotment disputes that have slowed the implementation of several housing and urban development projects. Officials said that unresolved payment disputes not only affect individual allottees but also delay infrastructure investment and urban planning initiatives carried out by development authorities.
Urban development agencies in Uttar Pradesh manage large land banks and housing schemes in cities such as Lucknow, Kanpur, Varanasi and Noida. Authorities expect the OTS-2026 scheme to help clear long-pending cases, revive stalled properties, and improve the financial position of development authorities by enabling recovery of substantial pending dues within a defined settlement period.
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