There may be instances where the premises constructed by the various institutions are let out to similar institutions and even to public sector undertakings.  The Government has, therefore, decided that:- 

(i)               The allottee institutions shall put up the building by fully utilising the permissible FAR;


(ii)              The institution may let out a portion of the built up area to institutions of similar nature after obtaining prior permission of the lessor by furnishing a copy of the certificate of registration and a copy of memorandum and articles of association of the licensee institutions;


(iii)           The institution may also be allowed to sublet a portion of the premises not exceeding 15 % of built up space with prior approval of the lessor for service organisations like banks, on payment of 25% of the licence fee received;


(iv)           The institution may also allowed to utilise a portion of the premises for the purpose of residence of the functionaries of the organisation 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. mts.; and


(v)             The total area sublet under the above categories and the area used for residential purpose shall however not exceed 40 % of the built up area. 

In cases where institutions have already sublet a portion of the premises, the above documents shall be furnished to the Land & Development Office within a period of six months for regularising each cases.  For this purpose, a general notice shall be issued by the Land & Development Office to all the institutions.  However, in cases where subletting is without prior permission of the lessor the same shall attract penalty of 10 % of the commercial land rates for the area sublet.


[M/o UD letter No. 344/94-LD dated 21.3.1994]