The Noida Authority has begun issuing notices to developers to pay the outstanding amounts against their name or face action, a move that will benefit thousands of homebuyers who are waiting to get their homes registered.
According to officials, once dues are cleared by the developer, the registration of flats in these projects can begin.
Earlier this month the Supreme Court had paved the way for the bodies managing Noida and Greater Noida, two of Delhi’s satellite cities, to recover dues from builders at an increased rate set by them.
According to Noida Authority officials, notices have been sent to 15-20 builders asking them to clear their dues within 15 days from the date of issuance of the notice.
The move comes after the Supreme Court earlier this month allowed the authorities to recover dues from builders at the interest rates fixed at the time of the execution of the lease deed.
The apex court had on November 7 quashed its 2020 order and directed builders to pay land dues as per the terms and conditions agreed upon between them and the authorities.
The Supreme Court in its previous order of June 2020 had directed the authorities to cap the rate of interest at 8 percent for the delay in payment of land dues by real estate firms.
According to the terms of agreements between the builder and the authorities, the rate of interest for delayed payment was pegged at 15-23 percent.
Prasun Dwivedi, the officer in charge of the group housing department of Noida Authority, said that nearly 72-75 builders have to pay dues to the authority and notices will be issued to all of them.
“We have started sending notices to builders and asked them to clear their dues within 15 days of the issuance of the notice. Notices were issued against 15 developers on Monday and today also we have issued notices against several builders. In two three days these notices will be sent to all the builders who have to clear their dues to Noida Authority,” Dwivedi told Moneycontrol on Tuesday.
He added that regular meetings are being held with developers every day and they are being reminded to pay their dues.
The official also said that in case of failure to payment of their dues in the given time, the authority will take strict legal and penal action against the developer.
“If any developer is unable to pay the whole amount in one go then they can submit their payment action plan to the Authority and we will look into it. Delay in payment will not be tolerated. In case of failure in payment of dues the authority will issue RCs (recovery certificates) against those builders,” Dwivedi said.
He added that if developers fail to pay their dues even after the issuance of RCs, the authority may also resort to attaching and auctioning their properties.
There are lakhs of apartments in Noida, Greater Noida, and the Yamuna Expressway regions that have been handed over to homebuyers but are yet to be registered on account of non-payment of dues by the developer.
The total amount to be recovered is Rs 9,000 crore, he said, adding that the move will help homebuyers as nearly 10,000 registries are pending with the authority.
The notices have been issued to a number of builders including Omaxe and ATS. These projects are located across different sectors in Noida such as 104, 76, 75, etc.
Officials said notices will not be issued against those developers whose cases are being heard by the Supreme Court and at National Company Law Tribunal.
