Days after the Supreme Court dismissed pleas filed by realtors to restore 8 percent interest cap for payment of land dues, the Greater Noida Industrial Development Authority (GNIDA) has decided to cancel allotment of land parcels of builders who have not cleared their dues, officials privy to the developments said.
They said that the Authority will soon start issuing last notices to defaulters before cancelling their allotments.
The Supreme Court on February 28 had dismissed the intervention applications (IAs) filed by realtors against its November 7 order, which had recalled the 2020 order that capped the rate of interest at 8 percent for the delay in payment of land dues by real estate firms to authorities.
Builders owe more than Rs 39,500 crore to the two authorities — Rs 26,000 crore to Noida, and Rs 13,500 crore to GNIDA.
A senior official of the Authority said that GNIDA CEO Ritu Maheshwari on March 2 issued instructions that land allotments of builders who did not pay their dues towards the Authority, will be cancelled.
“Recovery will be done by issuing RCs (recovery certificates) against defaulter builders and cancelling their land allotment. Thereafter, the Authority will take possession of the vacant plot and re-auction the land parcel. The CEO said that no more time can be given to any allottee who has not deposited the dues. They have been sitting with the plot for a long time. Builders are neither completing the project nor depositing the authority's money. Now action is necessary on such allottees,” the official said.
He further said that the Authority has brought re-schedulement policy to help builders clear their dues but the response has been tepid so far. “Only 10 defaulter builders have so far applied for the re-schedulement policy and deposited the requisite initial amount. We appeal that more defaulters should come forward and clear their dues,” the official said.
The official, however, did not divulge names of the developers who have opted for the reschedulement policy.
At their respective board meetings on December 28, 2022, the GNIDA and the Noida Authority had approved a policy to re-schedule the payment of builders’ dues, and also relaxed the time-extension charges. The window to avail the reschedulement policy will be open till March 31, 2023.
As per the policy, builders will have to submit 20 percent of the outstanding within one month of the release of the letter of reschedulement. They can then clear the rest in four instalments over two years.
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