Noida Authority Directs Real Estate Developers to Pay Debts
On May 9, the Noida Authority issued a directive to real estate developers to settle their debts and obtain permission to register apartments in the names of thousands of homebuyers who have been waiting for years. This directive was given during an evening meeting with realtors at the Sector 6 office. The developers assured the authorities that they would pay the land costs fees and obtain permission for the registries.
Policy to Address Stalled Legacy Housing Projects
On December 21, 2023, the Uttar Pradesh government approved a policy to address stalled legacy housing projects. According to this policy, a realtor had to receive interest waivers for two years during Covid 19, pay 25% of the land cost dues in 60 days, and the remaining 75% in one to three years.
Impact of the Scheme
However, few realtors have utilized this scheme, leading to negative impacts on homebuyers’ interests and a revenue loss of approximately Rs 14,000 crore for the authority.
"We have directed the realtors to use the scheme and pay the dues as soon as possible; otherwise, the authority will take appropriate action under the rules," said Lokesh M., who noted that only 16 realtors have paid the Rs 115 crore dues and obtained a registry for approximately 1,400 apartments.
Progress So Far
Only 525 registries have occurred so far.
"So far, only 525 registrations have taken place. We have directed the realtors to use the scheme. At least 42 out of 57 realtors had agreed to use the scheme. We have asked the rest to use the scheme," he said.
Report to State Government
"We will send a report about today’s meeting to the state government, which requested it," the CEO stated.
Among the 96 realtors who were held up and delayed, the Greater Noida Authority recovered 276 crore.
Completion of Apartment Registries
"We completed 2,637 apartment registries after realtors paid the dues as per state government policy. Ravikumar NG, CEO of Greater Noida Authority, stated that 40 projects will generate approximately Rs 1,200 crore in dues," he said.
Meeting with Realtors
During a meeting with realtors on Wednesday at Greater Noida’s Knowledge Park-IV office, the authority stated that if they do not use the scheme and pay the dues, the property will be attached and the housing project’s allotment will be canceled.
Stalled Legacy Housing Project Policy
According to officials, Yogi Adityanath approved an interest and penalty waiver for a ‘stalled legacy housing project’ on December 21, 2023. The policy was intended to assist millions of homebuyers in the Noida, Greater Noida, and Yamuna expressway areas, where an estimated 240,000 to 350,000 housing units are currently stalled reasons.
CREDAI’s Involvement
The Confederation of Real Estate Developers Association of India (CREDAI), a lobbying group for realtors, was present at both meetings in Greater Noida on May 8 and May 9.
"The realtors are using the scheme and getting registry permission. We are pursuing more and more realtors to use the scheme and help buyers get registry done," said secretary (CREDAI) Dinesh Gupta.