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No more extensions: LDA warns property defaulters to clear dues or face property cancellation

#Taxation & Finance News#Commercial#India
Last Updated : 5th Jul, 2025
Synopsis

The Lucknow Development Authority (LDA) has served a final notice to nearly 100 defaulters who have failed to clear outstanding dues totalling around INR 100 crore some pending for over 27 years. These include allottees of flats and plots across prominent schemes like Gomtinagar Extension, Kanpur Road, Sitapur Road and Kursi Road. Many of these are under affordable housing categories. The authority has warned that properties will be cancelled and registration amounts forfeited if payments are not cleared immediately. This move follows earlier efforts to auction nearly 5,000 unsold commercial properties and identify top defaulters with dues exceeding INR 460 crore.

The Lucknow Development Authority has intensified its recovery drive by sending a final warning to approximately 100 allottees with long-pending dues, estimated to be close to INR 100 crore. These defaulters, some of whom have been non-compliant for as long as 27 years have been told to make immediate payments or face cancellation of allotments along with forfeiture of registration fees.


Officials have confirmed that the list largely comprises individuals under affordable housing schemes across major corridors including Gomtinagar Extension, Sitapur Road, Kanpur Road, and Kursi Road. Most of these cases pertain to residential flats and plots allotted several years ago, where buyers have failed to complete full payments or execute necessary registrations.

The authority's message is direct and final: comply with payment norms or forfeit your property rights. According to LDA officials, this initiative is part of a comprehensive recovery effort launched to improve liquidity and ensure that land parcels and housing units do not remain idle due to prolonged defaults.

Earlier this year, the LDA had rolled out a discounted sale scheme targeting nearly 5,000 long-unsold commercial properties. Buyers were offered price reductions ranging from 3% to 6%, depending on how quickly they could complete payment formalities. Though auctions under this scheme are still pending, the discounted offering was aimed at reviving interest in stagnant inventory.

Alongside, the LDA also began cracking down on top-tier defaulters particularly those who purchased high-value commercial plots measuring above 500 sqm but failed to make timely payments. Dues from such allottees alone add up to more than INR 460 crore. Additionally, around 1,250 residential flats have been flagged either for lack of payment completion or pending registry formalities.

Authorities have reiterated that failure to follow through on payment schedules, as per the original terms of allotment, will not be tolerated. Several past allotments have already been cancelled on account of repeated non-compliance. With these fresh notices, the LDA has made it clear that defaulters will no longer be given extended leniency and that property recovery, revenue generation, and timely project completions remain top priorities.

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