The Greater Noida Industrial Development Authority (GNIDA) has hired consultant Currie & Brown to ascertain the status of construction on plots allotted to the builders and the dues owed by the latter.
The consultant has been directed to submit the report in one month’s time. Based on the report, the authority will decide on cancellation of plots allotted to builders, officials privy to the development said.
The allotments to builders who have not even started work on the plot, while the time to complete the project has passed, and are also not clearing their dues, will be cancelled. The authority will re-allot cancelled projects or plots to new entities.
Officials said Currie & Brown will survey nearly 50 projects, which are in different stages of construction, in Greater Noida and evaluate their construction status, dues and feasibility.
These directions were issued in a review meeting conducted by GNIDA CEO Ritu Maheshwari on Wednesday.
Saumya Srivastava, Officer on Special Duty at GNIDA, said many housing, commercial, institutional and other projects are incomplete even after their deadlines expired.
Most of these projects are incomplete because of the failure of developers; in several cases, construction work has not yet started despite the allotment of a land long ago.
“In such scenarios the homebuyers are worst sufferers and builders’ dues to be paid to the Authority keep increasing. So to benefit the homebuyers and get a clear status of such delayed projects, Currie & Brown has been asked to conduct a survey and a decision will be taken on the fate of these developers after submission of the report. Interests of homebuyers will be protected while initiating any action against builders,” he said.
Also Read: Dues unpaid: Greater Noida Authority cancels allotment of plot to developer
In November 2017, Noida Authority hired Currie & Brown to audit accounts of 14 defaulter builders, who are facing charges of diversion of funds collected from homebuyers. The agency had submitted a report, but findings of the report were not revealed.
According to data provided by GNIDA, there are around 193 projects in Greater Noida and out of which nearly 120 are functional and at least 50 projects delayed. According to reports, builders owe almost Rs 40,000 crore to the authorities – Rs 26,000 crore to the Noida Authority and almost Rs 14,000 crore to the Greater Noida Authority.
Officials said that in many cases the work on ground is yet to start so the authority is of the view that certain developers have no intention to pay the dues or complete the project so it has decided to cancel the allotment of such builders.
“So Currie & Brown has been asked to survey such projects and submit a report within one month. The report should define how many projects are incomplete and not in a condition to get delivered or revived. Then the authority will cancel allotment of such projects,” a GNIDA official said.
There was no immediate response available from Currie & Brown on the development.
The official said that the action regarding cancellation of projects will not be taken in the case of those projects that are in litigation or pending in the National Company Law Tribunal (NCLT). Nearly 21 projects are pending in the NCLT while 12 projects of Amrapali and Unitech groups that are being heard in the Supreme Court.
He said developers will be asked to open an escrow account so that buyers can be given refund if required.
Also Read: Cushman & Wakefield roped in to resolve UP land dues stalemate, stalled projects
Officials said that in the meeting, the CEO also directed the cancellation of the allotment of those entrepreneurs, who have not even gotten their maps approved after taking possession of the plot. The Authority will also issue notices to the industries that are running without completion and functional certificates. Strict action will be taken if such industries do not fall in line, they said.
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