KIADB to cancel industrial plot allotments over payment delays

Bengaluru: Karnataka industries minister MB Patil has directed officials to cancel, as per the rules, the allotment of industrial plots to entrepreneurs who fail to pay the stipulated amount within the prescribed time.

At a review meeting with Karnataka Industrial Areas Development Board (KIADB) officials at Khanija Bhavan, Patil warned that action would be taken against officials who failed to enforce the rules, industries department said in a statement.

As per the rules, allottees must pay 30% of the plot cost within one month of allotment. An additional month may be granted upon request, subject to 10% interest. If the payment remains outstanding even after the extended period, the allotment must be cancelled, the minister said.


Patil expressed displeasure over delays in enforcing the provisions, noting that demand for industrial plots was high and the rules were clear.

“Once an industrial plot is allotted, the subsequent activities must proceed without delay. There is no point in allowing plots to remain vacant for long periods. Investors, too, must understand this,” he said.

He added that plots allotted to those who failed to make payments on time should be taken back and allotted to investors with the financial capacity to pay the stipulated amount.

Industries department principal secretary S Selvakumar, commissioner Khushboo Goyal, KIADB CEO Govind Reddy and Karnataka Udyoga Mitra managing director Dodda Basavaraju attended the meeting.