New Delhi: In a punitive action, Delhi government has started the process of cancelling allotment of plots to nearly 900 entrepreneurs in various industrial estates for failing to set up factories years after they were given land.

The government has started the process of cancellation of allotments after extending the deadline for setting up industrial units several times in the last couple of years.

The final deadline to set up the factories ended on June 30 this year and the industries department has started the cancellation process on recommendation of infrastructure development agency DSIIDC which has been given the task of maintaining 29 industrial estates.

The city government had allotted 22,449 plots between 1999 to 2006 to facilitate relocation of industries from residential areas to conforming zones.

But in 2007, it was observed that some of the allottees did not take up construction activities and in order to ensure that the plots are put to proper use, the government had asked the entrepreneurs concerned to set up the units within a year.

Officials said despite repeated reminders and warnings, no construction activities took place in about 900 plots till now. Till last year no construction activities had taken place in 8,123 plots but following government warning, a majority of such entrepreneurs had started industrial activities in the allotted plots.

"The DSIIDC (Delhi State Industrial And Infrastructure Development Corporation) has identified about 900 units which have not even started the construction of their factory buildings. The process of cancellation of allotments of such units is under way," said a senior official of the industries department. The official said after cancellation, these plots will be offered to the wait listed applicants.

To facilitate construction and relocation, procedures for sanction of building plans and approvals for obtaining loans were also simplified by the government.

Earlier this year, the government had decided to extend the deadline to June 30 to allow the allottees to complete construction of their units and start industrial activities at their respective plots.

Meanwhile, DSIIDC allotted 51 plots to various entrepreneurs in industrial estates developed by it in Bawana and Bhorgarh area of the city.

The plots were allotted to the waitlisted applicants under the relocation scheme for industries operating in residential and non-conforming areas.

The beneficiaries were selected through a draw of lots held last evening.

"The draw took place in the presence of about 100 applicants, representative of industrial associations, and a panel of judges comprising senior officers of Delhi government," the official said.

With Thursday's allotment, the total number of plots allotted under the scheme since 1996 rose to 22,500.

Delhi Government, through legislation last year, had handed over maintenance of all 29 industrial estates and four flatted factory units to DSIIDC. Some of the industrial estates were under control of Delhi Development Authority and MCD earlier.