As per terms and conditions of lease deed the lessee is not supposed to use the premises other than specified in the lease deed without the prior permission of the lessor. As and when a breach of misuse of the premises is noted a show-cause notice is sent to the lessee asking him to remove the breach within 30 days from the date of notice. The period can be extended to 60 days if the lessee gives cogent reasons. The process of re-entry (determination of lease deed) is initiated if the lessee neither remove the breach nor send any communication. However, on receipt of intimation from the allottee indicating the specific date of removal of breach the premises is inspected again and the charges for the breach are being recovered in the name of misuse charges. The formula for calculation of charges for the misuse of the property has been approved by the M.O.U.D.

Misuse Area Present Market Rates charged Size of plot X 13.9 X Period/100
Permissible
covered area
(p.sq.m) Rate
(p.sq.m) on allotment
(p.sq.m)
The market rates for various colonies likely to be adopted in the above formula are being finalized by the Land costing Wing for each year.

A decision to charge interest @ 12.5% p.a. if the delay is 30 days or less and @ 15% per annum for the period exceeding 30 days has been taken if the payment of misuse charges is not received within 30 days from the date of issue of demand letter of misuse charges.