MDA Launches OTS Scheme 2026: ₹10 Crore Penalty Interest Waived, Defaulters Get Chance to Save Properties
Moradabad, March 23, 2026: The Moradabad Development Authority has opened a path of relief for allottees who failed to clear dues on properties purchased in the city. Under the One-Time Settlement Scheme 2026 implemented by the state government, defaulting allottees can now deposit their outstanding dues and protect their properties from seizure proceedings. The biggest benefit of this scheme is the complete waiver of penalty interest that had accumulated over the years .
Defaulters and Outstanding Amount
According to MDA data, approximately 166 properties currently fall under the defaulter category. These include residential, commercial, institutional properties, shops, and plots. Long-pending dues on these properties had accumulated penalty interest of about ₹10 crore, which will be completely waived under the OTS scheme .
Under the scheme, the authority expects to recover approximately ₹38 crore in principal and simple interest from defaulters. While allottees will get relief from penalty, MDA will be able to recover a significant stuck amount, which officials believe will not only increase revenue but also accelerate the city's development plans .
Key Features of the Scheme
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Defaulters are those who failed to deposit installments or amounts within 90 days after the stipulated time
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Penalty interest is completely waived under OTS; only simple interest needs to be paid
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Previously deposited amounts will be adjusted, but excess amounts will not be refunded
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Applications can be submitted both online and offline
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For dues up to ₹50 lakh: 1/3rd amount within 30 days, balance within 3 months
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For dues exceeding ₹50 lakh: Payment period extended up to 7 months
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3% discount available for one-time lump sum payment
Defaulter Breakdown by Dues Period
| Dues Period (Years) | Number of Defaulters | Total Outstanding (₹ Crore) |
|---|---|---|
| 1 to 5 years | 68 | 31.84 |
| 5 to 10 years | 10 | 11.89 |
| More than 10 years | 88 | 4.01 |
| Total | 166 | 47.75 |
Application Timeline and Consequences
The scheme provides a limited time of approximately three months for applications. Defaulters who fail to apply within this period may face strict action from MDA, including potential seizure of properties .
Official Statement
Jai Prakash, Property Officer of MDA, stated that defaulters will receive a 3% concession on penalty under the OTS scheme. Previously deposited amounts will be adjusted. Approximately three months' time has been fixed for the scheme, and applications can be made both online and offline .