Allotment and instalment letter
The allotment letter is the authority's formal offer after a bid is approved. It starts the payment clock: a first tranche, commonly 25% of the value less the EMD, falls due within a stated window, and the balance follows as a lump sum or in instalments. MDA gives 90 days for the 25% and then six half-yearly instalments over three years at 9.70%; RIICO gives 30 days and either 120 days interest-free or instalments at a rate it does not publish.
Worth knowing
- Missing the first tranche usually cancels the allotment and forfeits the EMD.
- Registration of the deed carries its own deadline — six months at MDA, then ₹1,000 a month.
Questions people ask
What is Allotment and instalment letter in a government plot auction?
The allotment letter is the authority's formal offer after a bid is approved. It starts the payment clock: a first tranche, commonly 25% of the value less the EMD, falls due within a stated window, and the balance follows as a lump sum or in instalments. MDA gives 90 days for the 25% and then six half-yearly instalments over three years at 9.70%; RIICO gives 30 days and either 120 days interest-free or instalments at a rate it does not publish.
What should a bidder watch for with allotment and instalment letter?
Missing the first tranche usually cancels the allotment and forfeits the EMD.
Anything else about allotment and instalment letter?
Registration of the deed carries its own deadline — six months at MDA, then ₹1,000 a month.