Policy Regarding Subletting

Policy regarding subletting of the Institutional Premises.

In suppression of the earlier Circular No: F 4(41)/96/Co-ordn./LD dated 08.7.1996 and Circular No: F4(41) 96 dated 21-10-99 Delhi Development Authority has, after due consideration decided to grant permission for subletting of the institutional premises with immediate effect subject to the following conditions:-

• The allottee institutional should put up the building by fully utilizing the permissible FAR.
  
  
• Institutions will be required to seek prior permission of DDA for any type of subletting.
  
  
• The total area sublet by an institution would not exceed 25% of the total built-up area.
  
  
• The institution may also be allowed to sublet a portion of built-up space with prior permission of DDA for service organizations line banks or organizations of similar nature or organization which have been set up under a statute such as Companies Act,1956, Indian Trust Act , etc. or institutions which have the requisite permission of RBI subject to the following conditions :-
  • They will not run shops, restaurants, hotels any industrial or manufacturing activity causing noise or pollution or disturbing the environment of the area in any way.
  • The income received on account of subletting would be ploughed back to the institution for creation of assets.
  • The subletting charges would be required to be paid on an annual basis in advance.
    
    

• The subletting charges would be 10% of the rent/ service charges /license fee, so received from the organization to whom the premises are sublet. However , as a special dispensation , the organization which have not paid their outstanding dues for subletting in the past , they will be required to pay 5% of the rental, so received , from the date of subletting within 180 days without charging any interest thereon. They may also be given the facility of depositing the arrears in 3-4 installment.
  However , if they fail to make the payment within the said period their allotment should be cancelled and proceedings for re-entry started against them.

• The institution can also utilize a portion of the premises for the purpose of residence of the functionaries of the organization subject to the condition that the area so used does not exceed 15% of the built-up space subject to a maximum of 150 sq.mtrs.

• The total area sublet under the above categories and the area used for residential purpose should , however , not exceed 40% of the bit -up area.
  
  
• The institutions which let out and more than 40% of the area transferred together should be proceeded against for cancellation of their allotments and action started for re-entry under the relevant provisions.
  
  
• In case the institution does not come forward on its own , the subletting charges would be two times the rental /service charges /license fee so received.