The government’s Housing and Development Council has introduced a new One-Time Settlement Scheme (OTS) 2026 to give relief to property owners who have pending dues.
This scheme will start from April 18, 2026, and will cover all types of properties, including EWS, LIG, commercial, group housing, and institutional properties.
Let’s understand everything in simple terms.
Big Relief for Property Defaulters
Under OTS 2026, people who have not paid their dues will get a chance to clear them easily.
If your outstanding amount is more than ₹50 lakh, you don’t have to pay everything at once.
You can pay in installments, making it easier to manage finances.
Another major benefit is that the government is offering interest relief, which reduces the overall burden on defaulters.
Easy Payment Plan: 7 Months Time
Defaulters with dues above ₹50 lakh will get a total of 7 months to complete the payment.
Here’s how the payment will work:
You must pay 1/3rd of the total amount within 30 days as a down payment
The remaining 2/3rd amount can be paid in 3 installments
These installments will be paid every 2 months, giving you enough time
If someone is still unable to pay within 7 months, they will get 1 extra month, but with penalty interest.
If payment is not completed even after that, the scheme will be cancelled.
Payment Rules Based on Amount
Up to ₹50 lakh dues: Pay remaining amount in 3 monthly installments
Above ₹50 lakh dues: Pay remaining amount in 3 installments every 2 months
This flexible system is designed to help different categories of buyers.
No Penalty Interest, Only Simple Interest
One of the biggest benefits of this scheme is that no penalty interest will be charged during the default period.
Only simple interest will apply, which makes repayment much cheaper compared to earlier rules.
Extra Benefits: Discount and Interest Rates
There are additional benefits for those who pay early:
If you pay the full amount within 30 days, you get a flat 3% discount
For installment payments, 9% simple interest will be charged
If you delay installments, 2% extra penalty will be added (total 11%)
Processing Fees You Need to Know
Applicants will have to pay a non-refundable processing fee, depending on property type:
EWS: ₹5,000
LIG: ₹10,000
Residential/Commercial (general): ₹50,000
Group Housing / Institutional / Large commercial: ₹5,00,000
Other cases: ₹2,00,000
How to Apply for OTS 2026
You can apply for the scheme both online and offline.
For online application, visit the official website of Awas Bandhu starting April 18, 2026.
After the scheme is announced, there will be:
1 month for awareness/publicity
3 months to submit applications
If you fail to pay installments within 90 days of the due date, you will again be treated as a defaulter.
