How To Revive Stalled Projects? Up May Decide On Waivers This Week, ET RealEstate

September 27, 2023

NOIDA: Representatives of the Noida, Greater Noida and Yamuna Expressway authorities will meet in Lucknow on Thursday to discuss steps to revive stalled real estate projects in their areas. They will also discuss recommendations of a committee headed by bureaucrat Amitabh Kant on giving waivers to developers so that the delayed projects could be completed.

Sources in the authorities said chief minister Yogi Adityanath would attend the meeting. The three authorities, which have prepared independent reports based on the Kant panel’s recommendations, will submit them before the chief secretary.

As of now, the authorities are said to have prepared an assessment of the rebates they would have to offer developers if the Kant committee’s recommendation of a ‘zero period’ is to be implemented. Under the zero period policy, the government waives penal interest and other dues on projects that are mired in legal disputes or issues related to land. But the policy would apply should the developers agree to complete the projects in a particular time.

Developers already owe around Rs 45,000 crore to the three authorities, a sum that is at the centre of a long-drawn dispute which has also taken a toll on the registry of flats. While the realtors say the penal interest they are being charged is stiff, the government has decided to stick to its rate, citing agreements that were signed during the allocation of land. The case is now in the Supreme Court.

Officials said around 1.7 lakh flats were stalled in the region because of various reasons.

In March this year, the Centre formed a 14-member committee chaired by former Niti Aayog CEO Kant to examine issues that were holding up projects and propose ways to offer relief to homebuyers. The committee submitted its recommendations in July. For Noida and Greater Noida, the panel listed 11 points.

These included offering the benefits of ‘zero period’ to developers affected by disputes, recalculating the dues and giving rebates if necessary.

The committee strongly favoured registrations in the names of original homebuyers without insisting on recovering the dues. It also recommended waiving interest and penalties during the pandemic — April 2020 to September 2021 — and for projects within 10km of the Okhla sanctuary that were suspended by a court order.

Officials said that in case such rebates were to be offered, the Noida Authority would have to forego Rs 7,400 crore. Similarly, the Greater Noida authority would have to give up around Rs 6,000 crore.

Data sourced from the authorities revealed there were 113 projects in Noida that collectively owed Rs 26,570 crore to the Authority. The Greater Noida Authority must collect Rs 14,309 crore from around 191 projects.

As many as 14 group housing projects owe over Rs 4,550 crore in dues to Yamuna Expressway Authority, where the registry of over 10,000 flats are stuck.

  • Published On Sep 27, 2023 at 08:59 AM IST

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