The Noida and Greater Noida authorities have formulated a six-point plan to tackle problems within group housing projects, recover dues from developers, and facilitate registries. This comprehensive strategy encompasses the cancellation of plot allotments for uninitiated projects, enabling completion through co-developers for stalled projects, providing options for surrender and cancellation of non-compliant projects, rescheduling overdue payments for builders, and streamlining the execution of sub-lease deeds for nearly completed projects.
If developers fail to capitalize on these options, the authorities may resort to blacklisting them or issuing recovery certificates.
- The proposals were initially presented to the chief minister during his June visit to Noida and subsequently discussed in the board meetings this month. Manoj Kumar Singh, the industrial development commissioner and chairperson of the two development authorities, directed officials to prepare a detailed report, comparing the proposals with recommendations from a central government committee led by former Niti Aayog CEO Amitabh Kant.
Collectively, builders in Noida and Greater Noida owe over Rs 41,000 crore to the authorities, with Rs 26,570 crore attributed to Noida.
- Officials indicated that projects that have not commenced even after years of allotment would face plot cancellations.
- The deposited amount, as per the lease deed, would be deducted, and the remaining funds placed in an escrow account to refund homebuyers.
For commercially viable yet incomplete projects, the authorities plan to appoint co-developers, enabling buyers to obtain possession of the flats and the authorities to recover their dues.
- Builders unable to complete their projects may be allowed to surrender them.
- The authorities are also considering reintroducing a rescheduling policy, granting developers a two-year window to clear their dues in installments.
- Approximately 10 projects in Noida and 20 in Greater Noida opted for this policy when introduced earlier this year.
Officials mentioned that the authorities might offer a three-month window for applications from partially or fully completed projects facing liability issues. Additionally, the authorities proposed allowing flat registries in nearly completed projects that cannot clear their liabilities. In such scenarios, the authority would assume possession of unsold flats and areas designated for commercial and institutional projects, permitting the registry of flats equivalent to the value of the unsold inventory.
Another proposed approach involves using unsold flats as mortgage collateral and allowing the registry of homebuyers’ flats equivalent to the value of those unsold units.
Be the first to comment