(1) If a person has not con structed a building within seven years from the date of issue of the lease deed of the plot, he shall be liable to pay the penalty for every year of default of construction at the rate of two and half percent per year of the residentia) price of the area prevailing at the time of allot ment / regularisation of land;
Provided that if any person fails to constiuct the building within the time stipulated above, then the period may be extended by the Lo cal Authority for nexl five years if such person may deposit the penalty 38 Rajasthan Urban Areas (Permission )Rules, 2012 double of the rate specified above.
Provided further that the person has not constructed a building even after the extended period specified in this sub-rule the allotment of such land shall stand automatically cancelled.
(2) Notwithstanding anything contained under sub-rule (1) the State Government may, in appropriate cases, regularise such cancella tion of the land and extend the period of construction of building for such period as it deems fit, if the allottee is prepared to pay a penalty for every year of default of construction at the rate of five percent of the residential price at the time of allotment / regularisation of land.