Pre-bypoll push falls flat: LIT's dues settlement schemes see lukewarm response

Time of India

09-07-2025

Ludhiana: In a bid to woo voters ahead of the Ludhiana West bypoll, the administration rolled out two special policies under the Ludhiana Improvement Trust (LIT) — one for settling long-pending non-construction fees and another one-time settlement (OTS) scheme for allottees who failed to pay instalments for their allotted properties.
But despite the seemingly generous offer, the public response has been underwhelming.
With just 20 days left before the July 31 deadline, the response remains muted — only 155 applications have come in under the non-construction fee (NCF) policy and 100 under the OTS scheme. Officials had hoped for a better turnout but blame poor recordkeeping and lack of awareness for the disinterest.
The policies were notified on April 17, but LIT officials now pin their hopes on a last-minute rush, saying beneficiaries often tend to settle dues closer to the deadline.
In 2016, a one-time settlement policy had been notified for six months, during which 372 applications were received — a higher response compared to the current policy, which was open for a shorter period.
Sources revealed that LIT officials lack accurate data on the number of defaulters for non-construction fees (NCF) or pending instalments. This is largely because records are not maintained plot-wise. Further, officials often don't know whether a plot is still with the original allottee or has been sold further — unless someone approaches the clerks in the sale branch directly.
by Taboola
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Sources added that this lack of proper recordkeeping has left LIT dependent entirely on defaulters to come forward on their own. In some cases, localities developed by LIT were later transferred to the municipal corporation (MC), resulting in incomplete or lost records.
Ludhiana Improvement Trust (LIT) chairperson Tarsem Bhinder admitted that they received fewer applications for the two policies, however, he claimed that he has asked the concerned staff to start contacting the defaulters to reap the benefit of the schemes.
He highlighted that the LIT had lesser staff to handle additional tasks.
Under the one-time settlement policy for the Non-Construction Fee (NCF), a 50% discount is offered on the total amount due (principal + interest) to allottees of properties under LIT development schemes — whether less than or more than 15 years have passed since the allotment letter was issued. For cases older than 15 years, the NCF is fixed at 5% of the applicable reserve rate.
Additionally, senior citizens, women, and legal heirs of Armed or Paramilitary Forces personnel killed in action are eligible for an extra 25% discount on the already reduced NCF amount.
After getting an exemption from the govt under the One-Time Relaxation Policy on the NCF, the allottee will be bound to deposit the amount and construct his property by getting the plan approved by Dec 31.
Similarly, under the one-time settlement for pending dues where allottees have made some kind of payment, this exemption is applicable only in those cases in which the allottees have deposited 1/4th part of the amount after the allotment of the concerned property. According to this, the allottees will be able to regularise their property by depositing the remaining amount at the applicable rate (at simple interest) and restoration charges at the rate of 2.5 percent at the reserve rate for the year 2025-26 as per the rules issued from time to time.
Complete exemption was given on penalty/penal interest.