Lucknow, March 2026 – The Uttar Pradesh Housing and Development Board (UPAVP) has released an action plan for the One-Time Settlement Scheme 2026, following a high-level meeting chaired by Additional Housing Commissioner Dr Neeraj Shukla on March 23, 2026. The scheme, approved by the State Cabinet chaired by Chief Minister Yogi Adityanath, covers 18,982 default cases involving properties under development authorities, UPAVP and special area development authorities. State Finance Minister Suresh Khanna informed the cabinet that the scheme aims to recover long-pending dues while providing relief to defaulting allottees, and could potentially unlock up to ₹12,500 crore, in the best-case scenario through settlement. The OTS will apply to all types of properties, including residential, commercial, and those allotted through auction, as well as properties allotted to government institutions, schools, and charitable organisations. The scheme window opens April 18 and will remain active for three months.
What the Scheme Offers and Who It Covers
Under the scheme, only simple interest will be imposed on the defaulters, a significant advantage over the existing penalty structure. Authorities will have the discretion to waive certain charges and penalties associated with delayed compliance and approvals. Notifications will be dispatched to defaulters’ mobile numbers and email addresses. The application window will remain open for three months, and applications are to be disposed of within a similar period. Under the payment structure, dues of up to ₹50 lakh will require one-third payment within 30 days of the demand letter, with the balance payable in three monthly instalments.
The scheme covers defaulters across Lucknow Development Authority, Meerut Development Authority, Ghaziabad Development Authority, Agra Development Authority, Kanpur Development Authority, Vrindavan Development Authority, UPAVP, and associated special area development authorities giving it statewide reach across UP’s most active property markets.
Location Context: Why This Matters for UP’s Property Markets
This intervention comes at a time when parts of Uttar Pradesh’s real estate market, particularly in cities such as Lucknow, Meerut, Ghaziabad, Jewar, and Jhansi, are witnessing renewed momentum driven by infrastructure expansion. The OTS scheme’s timing, just weeks after the Noida International Airport inauguration and YEIDA’s ₹11,829 crore budget approval reflects a deliberate effort to clean up legacy dues and unlock stalled properties across the state’s development authority ecosystem before a new investment cycle accelerates demand.
