The Noida Authority has decided to discontinue interest waivers and concessions for developers who defaulted on payment commitments under the Uttar Pradesh government’s “Stalled Legacy Housing Projects” policy.
The Authority took the decision at a board meeting last week.
According to officials, the decision follows repeated instances where builders availed relaxations but failed to clear full dues, delaying both project revival and possession for thousands of homebuyers.
Under the scheme, introduced in December 2022 on the recommendations of Amitabh Kant Committee to revive legacy-stalled projects, builders had to pay 25 percent of their total outstanding dues upfront and the remaining over three years, with the Authority waiving part of the accumulated interest and penalties.
However, officials said a section of developers took advantage of the concessions without making serious progress on payments.
According to the Authority, of the 58 promoters under the scheme, 13 have made partial payments, and 35 paid the initial 25 percent amount. Ten did not pay any dues at all.
“This cannot continue as such practices also trouble homebuyers who have been waiting for their homes for long. The Authority decided to discontinue interest waivers for developers who have failed to make further scheduled payments as mandated under the policy. This fresh crackdown on defaulter-builders hints towards a tougher recovery approach,” a senior Noida Authority official, who was part of the meeting, told Moneycontrol.
Another official said that developers were given time to restart projects under the state’s revival policy but several have misused it—availing interest waivers without honouring repayment schedules. Those defaulters will now face penal interest and recovery proceedings, the official said.
Registries pending
Together, these stalled projects have left thousands of homebuyers in limbo. Officials said that while the Noida Authority has managed to execute registries for 3,724 apartments, an additional 5,758 units remain blocked because developers are yet to clear their outstanding dues.
Until those payments are made, buyers who have paid for their homes cannot obtain legal ownership documents or take possession, deepening the uncertainty for families who have already waited years for delivery, officials said.
According to data from UPRERA (Uttar Pradesh Real Estate Regulatory Authority), nearly 40 percent of Noida-Greater Noida’s stalled inventory is still under revival or restructuring.
What next?
The Authority is likely to start a compliance audit of all developers registered under the scheme to determine the exact quantum of unpaid dues and whether on-site work has resumed.
Officials said that projects not complying with rules would face reinstated penal interest, cancellation of allotments, and land recovery proceedings.
Officials said a fresh review meeting is likely to be held later this month to finalise the list of defaulting developers. Notices are also expected to be issued soon.
Real estate experts said that this move is likely to create uncertainty for homebuyers as they may have to wait longer for their homes, if the land allotment is cancelled due to pending dues. However, for defaulting developers, they said it is a reminder that the era of easy extensions is ending.
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