Non-completion of construction of leased land within the stipulated period is a breach of the terms of the lease unless extension of the period is granted under the powers delegated to the Land & Development Office or through general extension granted by the Government.  Such a breach shall be regularised on payment of penalty as follows:- 

(i)                  5 % of the premium for full year.


(ii)                4 % of the premium for 9 months.


(iii)               3 % of the premium for 6 months.


(iv)              2 % of the premium for 3 months.


Where due to certain circumstances which were beyond the control of the lessee to complete the construction or where the lessee took tangible steps but was prevented from doing so for the reasons beyond his control, the Land & Development Office shall grant extension without levy of penalty on year basis on the merits of each case. 

In the Rehabilitation leases where no date has been mentioned in the lease deed for completion of the building two years shall be counted from the date of execution of the lease deed.