As part of a course correction to get stalled housing projects back on track, and resolve builder dues and pending registries, the Noida, Greater Noida and Yamuna Expressway authorities are likely to take up the recommendations of the Amitabh Kant committee report at their respective board meetings this month even as the Noida Authority has also initiated an assessment of stalled projects and is reviewing builder dues, officials aware of the matter said.
According to Noida Authority officials, the report of the assessment, which is being done by a private chartered accountancy firm, is likely to be submitted in a fortnight’s time. In the survey, the current status of stalled projects, the number of flats stuck due to a stalemate between the authority and builders, and the exact amount of dues of builders owed the authority, among other things, will be checked, they said, requesting anonymity.
The boards of the Greater Noida and Noida authorities will meet on August 12 and 13, respectively, while the Yamuna Expressway Industrial Development Authority (YEIDA) board is likely to meet towards the end of the month.x
Officials at the Noida and Greater Noida bodies said that the recommendations of providing a moratorium to developers towards their dues and rationalisation of interest rates are likely to be on the agenda at these board meetings.
Lokesh M, chief executive officer, of Noida Authority, said that the authority was going over the Amitabh Kant panel report to make an informed decision. “We have got the report and are assessing it. We will have to put it before the board for discussion before deciding on any conclusion. We will put it in the coming board meeting. For better clarity over the issue, we have also started an assessment (of stuck projects) through an internal committee and we are awaiting their findings,” he told Moneycontrol.
Another official at the Noida Authority said that nearly 100 projects by around 60 builders are being assessed. This exercise will not include projects under litigation before the National Company Law Tribunal and Supreme Court.
“Any policy, if any, on granting moratorium to builders or rationalising interest rates as recommended by the Kant committee can be formed only after detailed discussion and approval from the state government. Recommendations of the committee on moratorium and rationalisation of interest rates will be discussed in the board meeting and then minutes of the meeting will be sent to the state government for further directions,” said the official, who asked not to be named.
As per official estimates, real estate developers owe nearly Rs 26,000 crore to the Noida Authority, and about Rs 14,000 crore to the Greater Noida Authority.
The panel led by Amitabh Kant, India’s G20 Sherpa and former CEO of NITI Aayog, proposed a moratorium on payments that builders owe land-owning authorities. This would enable developers to improve their finances and complete delayed or stuck housing projects, with the provision that the builders will clear their dues in stages. The committee also said that a reasonable interest rate be charged and the focus should be on completing the projects.
According to Anarock, a real estate consultancy, the National Capital Region (NCR) and the Mumbai Metropolitan Region together accounted for 77 percent of stalled projects. The NCR alone has 240,610 stuck or delayed units worth over Rs 1.81 lakh crore.
The board meetings are also likely to discuss elevated road projects and get a status update on established industries' granted occupancy and completion certificates.
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