The Greater Noida Authority has cancelled the allotment of two plots to Parsvanath Developers for not completing the project and for non-payment of dues of Rs 281 crore.
According to a statement issued by the Authority on Thursday, it will take over both these plots and reallot them afresh. The plots are located in Sector Pi of Greater Noida.
The Authority said Parsvanath Developers were slated to complete the projects by 2013. Their dues are also still pending. The action was taken per the directions of Greater Noida Authority CEO Ritu Maheshwari.
“The Greater Noida Authority has started taking strict action against allottees who have neither cleared their dues nor completed their projects. The Authority’s CEO, Ritu Maheshwari, has said that those who have neither cleared their dues nor completed their projects will not be spared and their allotments will be cancelled,” the statement said.
Moneycontrol reached out to Pradeep Jain, chairman Parsvanath Developers, but there was no response.
Earlier this week, the Noida Authority had also begun issuing notices to developers to pay their outstanding amounts or face action. The move is aimed to benefit thousands of homebuyers who are waiting to get their homes registered.
The move comes after the Supreme Court (SC) earlier this month allowed the Noida and Greater Noida Authorities to recover dues from builders at interest rates fixed at the time of execution of the lease deed.
Also Read: Builders may have to pay land dues to Noida, Greater Noida Authorities at a higher rate
The Greater Noida Authority had allotted plot numbers 11 and 5, both in sector Pi, to Parsvanath Developers in 2006 and 2007, respectively. The projects were to be completed by 2013 and 2012, respectively.
In 2007, the developer had paid Rs 7.14 crore out of the total amount of Rs 33.54 crore for plot number 11. The remaining amount was to be paid in 13 instalments by 2013. The builder also had to complete the project by then but nothing was done, the statement said.
Similarly, the developer had paid Rs 2.52 crore out of the total Rs 11 crore that was to be paid for plot number 5. The remaining amount was to be paid by 2013 in 13 instalments, which the builder failed to do.
The statement said that the developer’s total dues for the two land parcels amounted to Rs 281.41 crore.
“The developer was served a number of notices for defaulting on his payments, and warned that his allotments may be cancelled, but to no avail. The Authority will now take over these land parcels and allot them afresh,” the statement said.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
