NO: CO.ORDN: EXIT POLICY: 2000                                        DATE: 10-2-2000

OFFICE ORDER

             SUB: Surrender of sheds by allottees-Exit Policy.

Hither to, the allotteeswho use to surrender the shed after taking possession of the same, had to pay Interest on the cost of the shed from the date of possession till the date of surrender.

However, In respect of shed, where KSSIDC had not provided power, surrender of such sheds were being accepted by for felting 10% of the amount of Earnest Money Deposit

Representations have been received for a reasonable exit policy, as payment of Interest on the cost of the shed would be a too heavy burden for the allottees. Considering all aspects of the matter, the Corporation has now decided as under:--
a) In respect of shed where power has not been provided, The forfeiture of 10% of  the Security Deposit would Continue.
b)In respect of sheds where power has been provided and the allottees wish to surrender the shed within two years from the date of taking possession the rent prescribed for that area should be deducted out of the Security Deposit and the balance if any refunded. If, however, the Security Deposit is not sufficient for meeting this, the allottees will have to pay the same at the time of acceptance of surrender.
c)In respect of surrender after two years, the previous decision of collecting Interest at the rate applicable for the scheme on the total cost of the shed for the entire period of occupation will continue;
d)If any damages caused to the shed, the damages should be assessed and the cost of repairs should be collected
This order comes into force with Immediate effect.

Sd/-
GENERAL MANAGER (IEs)

KARNATAKA STATE SMALL INDUSTRIES DEVELOPMENT CORPON.LTD

Industrial Estate, Rajajinagar, Bengaluru – 560 044.

NO: CO.ORDN: EXIT POLICY:2002-03                                      DATE: 7-5-2002

OFFICE ORDER

Sub:  Exit Policy – reg.

          Ref:  1. Decision of the 278th Board Meeting held on 28.3.02.
                   2. H.O Office Order No.

As per the decision of the Board the revised exit policy are as follows:

In respect of Industrial Estates situated in Category ‘A’ area, excepting the Industrial Estates at Kumbalgodu, KEONICS and Doddaballapur, in respect of all other Estates the existing Exit Policy and the change of constitution policy will continue.In respect of Industrial Estates in Category ‘B’ and ‘C’ including the Industrial Estates of Kumbalgodu, KEONICS &Doddaballapur, the Exit Policy will be as under:
(a)Wherever the allottees surrender the shed within two years from the date of taking possession, they will be required to pay the rent that is in force have been paid at the time of surrender.
(b)Where the surrender takes place beyond two years and within five years, they will be required to pay 1 ½ times the rent in force from 3rd year onwards up to the date of surrender.
(c)Where they wish to surrender beyond five years, and are in arrears of more than 50% of the instalment they will be required to pay double the rent prescribed for that area at the time of surrender beyond the period prescribed in ‘a’ & ‘b’ above.
(d)If they have committed any acts of damage and waste to the property, the allottees have to make good such damaged to the property.
(e)The allottee has to clear the KPTCL dues and commitment charges to KPTCL and get an NOC from KPTCL to enable the new allottee to get the power.
(f)Power-line charges if any, paid will not be returned

Further, in order to encourage the free  transferability of industry  to the intending  purchasers  in respect  of the above categories,  any change  of constitution  or transfer should be allowed freely    without  any  escalation in the cost.  However, a transfer  fee at the rate  2% of the cost as on date of transfer of the shed/plots may be levied where  the original allottee  is replaced.

The Committee desired that this facility should be extended to all the allottees and in respect of pipeline cases that is cases where based on communication sent by KSSIDC, allottees are requesting for reconsideration or those allottees who have sheds/plots are requesting for certain concessions, the matter could be decided by the Managing Director on a case to case basis.  The Committee felt that in cases where the issue is completely settled that is where the allottees have accepted the decisions of the Corporation and there is nothing to do further that the question of reopening of such cases will not arise.

                                                                                         Sd/-
                                                                   GENERAL MANAGER (IES)

NO.IES:OTS:CONCESSIONS:2004                                                                       DATE : 09-11-2004

Sub: One Time Settlement (OTS) for issue of Sale Deeds in respect of sheds allotted under Hire Purchase Scheme-Concessions – reg.
Ref: Proceedings of the 290th Board Meeting held on 8-11-2004 - Agenda Item No.7& 8.

PREAMBLE
KSSIDC is constructing Industrial Sheds under different schemes and the sheds are being allotted to Small Scale Units on lease-cum-sale basis.  In the review Meetings recently it was noticed that in large number of cases though the allottees have completed the lease period, the conveyance  of title  in the form of issue of Sale Deeds  still pending.   In the recent years majority of Small Scale Industries are also suffering on account of general recession in the economy and also certain problems faced in the marketing of their products etc.

Relief packages are already being given by Banks / Financial and other Institutions to help the Small Scale Industries. The Corporation has also considered various options to provide relief to Small Scale Industries to overcome the problems. By issuing of sale Deed and giving ownership of the sheds it will be useful as security for the SSI units in enhancing limits of financial assistance by banks. This issue has been receiving the attention of the Corporation in the last 5 to 6 months. The Corporation has held several meetings with the Association Representatives including KASSIA with regard to reliefs and concessions.

The Government of Karnataka have also extended exemption from payment of stamp duty and Registration Charges to SSI units upto 31st December 2004.

The Board in its 290th Meeting held on 8.11.2004 after considering various alternatives and also keeping the financial implications  to the Corporation, has approved the introduction of the OTS and reliefs and concessions thereof.  Hence the Order.

OFFICE ORDER

The concessions and reliefs under OTS shall be as below at para I, II & III.
I) (1) In respect of sheds allotted prior to 1.1.2001 and where interest rates are higher than 16% P.A under RBM Method, the Corporation will arrive at total amount payable towards cost of shed (i.e. principal plus interest) by each allottee as per existing terms and conditions of allotment and as per existing system of computation followed by the Corporation till date.This amount will be arrived at as at 30.11.2004 or 31.12.2004, as the case may be. In addition the amounts due under IODPI (after setting off payments made towards PI) i.e. penal interest will also arrived separately.

(2) On the above total amount of principal plus normal interest      payable towards cost of  shed, thus arrived  the Corporation will first set off amounts received as installments towards principal price of shed and thereafter the balance if any towards the  normal interest portion  accrued and the balance interest due will be arrived at.  On this, 20%  (Twenty percent) discount will be extended and revised dues are worked out.  In cases where allottees payments  are less than principal price the 20% (twenty percent) discount will be limited to Interest accrued & due and not  to the balance price payable.   Thereafter balance price plus interest after discount will be added and amount payable by the allottee will be determined.

(3) In addition to the above amount, the allottees have to pay all other dues towards Water Charges, Service Charges, Power Line Charges, and Open Space cost difference etc., in full.

(4) If the allottee clears all the above dues indicated (2 & 3) above,   then only the allottee will be eligible for availing waiver of outstanding IODPI (PI) as per  decision taken  by  the  Board and allottee will also have to pay the remaining of PI( after Waival)  if any.

(5) Only after payment of amounts indicated (2, 3 & 4) the Corporation will execute the Sale Deed.   The Board has instructed that there should not be any delays in executing Sale Deed once the allottee fulfills the payment and Corporation shall ensure that the allottees get the Stamp Duty benefit extended by Government.

(6) The above benefit  will not be applicable to sheds allotted to non SSI units,  Government Departments, PSU's.  Similarly this benefit  is also not applicable to allottees of sheds  where the interest is rescheduled subsequent to1-1- 2001, to 16% or 14% /13% /12% as the case may be and also in cases where the lease period has been enhanced to 12 years.

(7) This benefit is applicable only up to 31.12.2004.

II) WAIVAL OF PENAL INTEREST ( I O D P I )
A.CASES OF ALLOTMENTS MADE PRIOR TO 1.1.2001.
i)The concession on the outstanding penal interest (IODPI) as on the date of settlement will be as under:
          1) Upto and including Rs.1, 00,000              100% waival
          2) Rs.1,00,001 to Rs.2,00,000                       90% waival
          3) Rs.2,00,001 and above                             80% Waival

(On Slab Basis)
The above concession is applicable if the allottee clears all his other dues such as Balance cost of the shed, Service Charge, Water Charge, Power Line cost dues and Open Space cost etc.

ii)In addition to the above, there shall be a 5% discount on the balance interest amount payable towards the cost of the shed payable, as enumerated in I (1) and (2) above,incases of allottee belonging to SC/ST, Women Entrepreneurs, Differently Abled Category and Ex-Serviceman categories.However, in respect of allottees to whom 20% discount on interest is offered as per I (2) above,this 5% will be computed after allowing 20% discount first.

III) ONE TIME SETTLEMENT (OTS) FOR CASES OF ALLOTMENTS MADE ON OR AFTER 1.1.2001.
1. Waival of Penal interest (IODPI) as per II A (i) above Subject to the allottee clearing all the other dues as enumerated therein.
2. (i) 2% discount on balance interest amount payable towards cost of the shed in the manner as indicated in item No.I (1) and (2) above.
    (ii) The stipulation of 5% pre-closure charges is withdrawn. The OTS schemes comes into effect from the date of this office Order and will be in force till 31.12.2004

The allottees who fail to avail the benefits of this OTS scheme will automatically continue to be governed by the original terms and conditions of allotment.
A format for intimating to the allottee is enclosed herewith which shall be sent by RPAD and Muddam with proper acknowledgement.
Encl: as abovesd/-

[ V.RASHMI ]
MANAGING DIRECTOR

NO: IES: OTS: ADD: 2004-05                                                    DATE: 20.11.2004

       
ADDENDUM

SUB:One Time Settlement(OTS) for issue of sale deeds in respect of sheds allotted under Hire Purchase Scheme Concessions – reg.

REF: Office Order No.IES/OTS/CONCESSION/2004,dated 09.11.2004.

As per the Office Order under reference, under item No II A (ii) 5% additional discount on the balance interest payable to the allottees belonging to SC/ST, Women Entrepreneurs, Differently Abled Category and Ex-Servicemen categories in the manner indicated therein, is applicable only to cases of allotments made prior to 1.1.2001. The Board in its 291st meeting held on 20.11.2004 after further consideration has approved to extend the said benefit to cases of allotment made on or after 1.1.2001 also which may be noted for action accordingly.

2.Further, in the format of the letter of intimation enclosed to the said office order, under Sl.No.1 i.e., details of payments, the phrase “arrears ofinstalment ” be corrected as “Balance Cost of shed ” and at the end of the letter“E & O E” shall be inserted.

3.It is once again reiterated that the concerned Deputy Chief Manager (IEs) shall be totally responsible to collect all payment dues including service charges, line drawing charges and Raw material dues if any before extending the One Time Settlement benefits and execution of sale deed.

Sd/-