Noida, Greater Noida authorities have six-point plan to compete projects, recover dues, ET RealEstate

August 28, 2023

NOIDA: The Noida and Greater Noida authorities have come up with a six-point plan aimed at addressing issues within group housing projects, recovering dues from developers and promoting registries.

The plan includes cancellation of plot allotments for projects that have not yet started, allowing completion through co-developers if projects are stuck, providing options for surrender and even cancelling those that are non-compliant. Additionally, the plan involves rescheduling overdue payments for builders and simplifying the execution of sub-lease deeds for projects that are nearly complete.

If the developers concerned failed to utilise these options, the authorities may blacklist them or issue recovery certificates.

Officials said the proposals were presented before the chief minister during his visit to Noida in June and then discussed at the latest board meetings this month.

Manoj Kumar Singh, the industrial development commissioner and chairperson of the two development authorities, had instructed officials to prepare a comprehensive report. They were asked to compare the proposals with the recommendations made by a central government committee, headed by former Niti Aayog CEO Amitabh Kant, to resolve the legacy of stalled projects.

Builders in Noida and Greater Noida collectively owe over Rs 41,000 crore to the two authorities. Of the total amount, Rs 26,570 crore is due to Noida.

Officials said the projects that were yet to start even after years of allotment would face cancellation of plots. After deducting the deposited amount in keeping with the lease deed, the remaining funds would be placed in an escrow account so that the homebuyers are refunded, the officials said.

For incomplete projects that are still commercially viable, the authorities plan to appoint co-developers. This will allow buyers to get possession of the flats and the authorities their dues.

Another option of recovering dues is to allow builders to surrender their projects if they cannot complete them.

The authorities are also open to reintroducing a rescheduling policy that will give developers two years to clear their dues in installments. Around 10 projects in Noida and 20 in Greater Noida had opted for this policy when it was introduced in January this year for three months.

The officials said the authorities could once again offer a three-month window for accepting applications for projects that are partially or fully complete but have been facing issues due to liability.

The authorities have also proposed that the registry of flats could be allowed in projects that are almost complete but are unable to clear the liability. In such cases, the authority would take possession of the unsold flats and areas designated for commercial and institutional projects. It would then allow the registry of flats equivalent to the value of the unsold inventory, commercial and institutional projects.

Another approach would be to take unsold flats of the builders as mortgage collateral and allow the registry of homebuyers’ flats equal to the value of those unsold units.

  • Published On Aug 28, 2023 at 08:55 AM IST

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