Stalled real estate projects: Noida Authority tells realtors to opt for relief package and clear dues by Feb 22

Noida Authority has fixed February 22 as the last date for realtors to accept a waiver and clear their land cost dues in accordance with the terms of a realty policy, (HT Archive)

The Noida Authority has fixed February 22 as the last date for realtors to accept a waiver and clear their land cost dues in accordance with the terms of a realty policy, notified by the Uttar Pradesh government last December, officials in the know of the matter said on Thursday.

“We have fixed February 22, 2024, as the last date to accept the terms of the state government policy approved to address the issues in the stalled housing projects in Noida. If defaulter realtors fail to accept the terms by that date, we will act against them as per rules. If they accept the terms, then they need only pay 25% of the total dues against a stalled housing project in the next 60 days and the remaining over a period of one to three years,” said Lokesh M, chief executive officer, Noida authority.

How many real estate developers have paid their dues so far?

Only 20 of 57 realtors of stalled housing projects have come forward to pay dues till date, after availing of interest waivers under the new policy.

After 20 developers paid 25% of their total dues, the Noida authority issued permission for registry of flats in their housing projects, in accordance with the December 2023 policy.

“We will issue permission for the registry of at least 2,500 apartments in these 20 projects. After February 22, we will act against those realtors as per the rules,” said Lokesh M.

All about the 2023 realty policy of the Uttar Pradesh government?

Under the December 21, 2023 policy, developers can avail of waivers on penal interest for two years — the Covid 19 period — and also for the period when construction got disrupted owing to court orders. After deducting penal interests, these 20 developers agreed to pay 25% of the total dues to become eligible for registry of apartments, officials said.

The realty policy clearly states that its provisions have to be implemented within three months of its notification.

What is the total amount that developers owe to the Authorities?

There are 57 stalled housing projects, having 32,000 units in Noida, and 96 stalled projects having 75,000 units in Greater Noida, that are eligible to benefit from this policy.

As per estimates, Noida realtors owe around ₹8,000 crore, and Greater Noida realtors defaulted to pay around ₹5,500 crore dues against the stalled projects.

Why is it that more Greater Noida developers are coming forward to clear their dues but not so in Noida?

The Greater Noida developers are coming in big numbers to pay their dues because the amount that they owe the Authority is much less under the policy that provides for waivers.

“These developers also demand more waivers before they make up their mind to pay up the dues,” said the Noida authority officials.

In Greater Noida, however, more developers are coming forward to clear dues also because their dues are below ₹100 crore, said the Greater Noida authority officials.

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