UPAVP Unveils Action Plan for OTS 2026: Relief for 18,982 Defaulters, ₹11,848 Crore Dues at Stake
Indian Bureaucracy News, Lucknow, March 24, 2026 | In a move aimed at providing relief to thousands of defaulting allottees and unlocking stalled real estate assets, the Uttar Pradesh Housing and Development Board (UPAVP) has released an action plan for the One-Time Settlement (OTS) Scheme 2026. The announcement follows a high-level meeting chaired by Shri Madhusudan Hulgi IAS, Special Secretary to the Chief Minister Yogi Adityanath and Additional Housing Commissioner, on March 23, 2026, setting the stage for a mass-contact campaign to implement the state government’s flagship initiative.
The scheme is part of the Uttar Pradesh government’s OTS-2026 initiative announced in February 2026 by Chief Minister Yogi Adityanath to speed up the long-pending residential and commercial allotment cases.
Cabinet-Approved Scope: ₹13,000 Crore Recovery Target
The scheme, approved by the State Cabinet chaired by Chief Minister Yogi Adityanath earlier this month, covers 18,982 default cases involving properties under development authorities, UPAVP and other special area development authorities. Outstanding dues in these cases are estimated at ₹11,848.21 crore. In addition, 545 cases relating to map approvals, involving dues of about ₹1,482.10 crore, have also been included.
State Finance Minister Suresh Khanna informed the cabinet that the OTS scheme aims to recover these long-pending dues while providing relief to defaulting allottees. 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.
Policy Outreach: Framework, Payment Structure, Fee and Rescheduling
The scheme is expected to roll out on April 18, 2026, and will be open for applicants from overdue accounts. As part of the rollout, authorities will contact all identified defaulters through email, SMS, and letters.
In a major push to maximize public participation, the first month will see an intensive awareness drive, with information disseminated across newspapers, radio, digital platforms, and prominent public spaces.
To facilitate seamless access, assistance centres and dedicated help desks will be set up in every zone to guide applicants. Authorities have also emphasized robust coordination at all levels to ensure the smooth and effective implementation of the scheme.
The scheme provides for a waiver of penal interest, with only simple interest payable. The application window will remain open for three months (90 days), and applications will 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. For higher amounts, the balance can be cleared over six months. A processing fee ranging from ₹100 to ₹11,000, depending on the category of property, will be charged. In cases where instalments had earlier been rescheduled, calculations will be based on the original allotment terms.
Officials said the meeting chaired by Additional Housing Commissioner and Secretary Madhusudan Hulgi IAS (Uttar Pradesh 2015), was attended by senior UPAVP functionaries, including the Chief Engineer, Chief Architect and Finance Controller Dr Mahesh Chandra Pandey. UPAVP is increasingly moving away from its traditional revenue-collector model towards becoming more of a facilitator, ensuring that the benefits of the scheme reach the general public.
Infrastructure-Led Growth: The RRTS Impact
The launch of the OTS 2026 comes at a time when Uttar Pradesh’s real estate market, particularly in Tier 2 cities, is witnessing infrastructure led changes in the state’s urban landscape. The full-scale operationalisation of the 82 km long Delhi–Meerut RRTS (Namo Bharat) corridor on February 22, 2026 has triggered a property boom across Meerut and Ghaziabad including areas of New Ashok Nagar in Delhi, and along the 21 km section connecting Meerut South to Modipuram. With travel time between Meerut and Delhi now reduced to under 60 minutes, real estate experts report significant price appreciation.
This improved connectivity has translated into rising property values, with land prices in Meerut increasing from ₹8,000–12,000 per sq yard to ₹12,000–20,000. Areas around RRTS stations such as Modipuram and Shatabdi Nagar have recorded price gains of 30–60%, while Meerut South has seen increases of up to 67%, driven by its interchange advantage. In Ghaziabad, locations such as Siddharth Vihar and Raj Nagar Extension have witnessed price appreciation in the range of 30–67% since 2023. Over a longer horizon, property prices have risen by 54% in Meerut and as much as 131% in Ghaziabad over the past four years, reflecting the impact of transit-led development.
Real-Estate Developer Activity and UPAVP Auction Success
National-level developers are increasingly being drawn to Transit-Oriented Development (TOD) zones along the RRTS corridor. Paras Buildtech has launched Paras Estate, a plotted development near Meerut Bypass Road comprising over 200 premium residential plots.
In a sign of growing investor confidence, UPAVP conducted an e-auction on February 19, 2026, for properties in Meerut’s Transport Nagar, Madhavpuram, Shastrinagar, and Jagriti Vihar Extension schemes. The auction resulted in the sale of 28 properties for a total of ₹58.91 crore. Deputy Housing Commissioner Anil Kumar Singh noted that bidders included not only local residents but also investors from Delhi, Gurugram, Faridabad, and Noida. Reflecting strong demand, UPAVP had invited applications for 30 plots in Madhavpuram and received 2,029 applications.
The state has earmarked 3,273 hectares for TOD-based projects under the Meerut Development Authority (MDA) Master Plan 2031, with 2,442 hectares organised into seven TOD zones and two special development areas around RRTS stations. In Ghaziabad, the state has prepared a GIS-based Integrated Master Plan 2031 covering Ghaziabad, Loni, Modinagar, and Muradnagar, expanding the development area by 27 percent to over 32,000 hectares.
Expert Outlook: A Statewide Real Estate Boom
Industry experts note that the infrastructure momentum driving Meerut’s growth is part of a broader statewide transformation. The Yogi Adityanath government’s focus on expressways, rapid transit corridors, and urban development schemes has created a ripple effect across Uttar Pradesh’s real estate landscape.
Prashant Thakur, Executive Director & Head of Research and Advisory at ANAROCK Group, observed that the fully operational RRTS is not merely a Meerut phenomenon but a template for how infrastructure-led growth is reshaping urban centers across the state. “We are witnessing a paradigm shift where Tier 2 cities across Uttar Pradesh are emerging as viable alternatives to the NCR. With improved connectivity, we can expect steady capital growth and a significant shift toward organised, gated township developments across the state’s urban corridors,” he said.
Ankita Sood, National Director of Research at Knight Frank India, added that infrastructure upgrades, including the Purvanchal Expressway, Bundelkhand Expressway, Gorakhpur Link Expressway, and Metro connectivity in multiple cities, are collectively elevating Uttar Pradesh’s position as one of India’s most dynamic real estate markets. “These projects are unlocking large land banks across the state, from Western UP to Purvanchal and Bundelkhand, creating new growth poles beyond the traditional NCR region,” she stated.
UPAVP: Beyond the NCR
The Uttar Pradesh Housing and Development Board (UPAVP) has been instrumental in driving urban development across the state. Infrastructure-led development is reshaping urban centres beyond the NCR, with visible spillover into housing and real estate. Cities such as Gorakhpur, Jhansi, Varanasi, Prayagraj, and the twin centres of Agra and Mathura have seen accelerated urban expansion following major expressway and connectivity projects.
Improved road networks, coupled with targeted housing interventions by UPAVP, have supported the growth of residential clusters and organised urban development in these cities. In pilgrimage and heritage centres such as Varanasi and Mathura, this has translated into increased demand linked to tourism, while in emerging regional hubs like Gorakhpur and Jhansi, connectivity gains have begun to position them as new centres for investment and urban growth.
With the OTS 2026 scheme, UPAVP has signaled its readiness to resolve decades-old disputes across the state. The government aims to recover pending funds while unlocking Uttar Pradesh’s full real estate potential through a combination of financial relief for defaulters and robust infrastructure growth spanning expressways, rapid transit corridors, and urban development schemes.
From Bundelkhand to Purvanchal, and from the Braj corridor to the NCR hinterland, stalled assets are poised to transform into thriving residential and commercial hubs—cementing Uttar Pradesh’s position as a national leader in urban development.
