The Greater Noida Industrial Development Authority (GNIDA) has paved the way for registration of over 6,500 flats across different stuck projects, officials aware of the matter said adding that the move is likely to bear fruit as nearly 30 real estate developers have come forward to clear their dues under the Uttar Pradesh government’s stuck projects rehabilitation package.
According to officials, the rehabilitation package comprises zero periods for developers where penalties and interest will be waived, payment of recalculated dues rescheduled so that registries can be executed at the earliest and implementation of co-developers’ policy to complete stuck housing projects.
They said that in the zero period, the builders can avail of waivers on penal interest for a period between April 1, 2020, and March 31, 2022, in place of COVID-19 disruptions caused to real estate projects, and also for the duration when construction got disrupted owing to court orders.
The developers will have to initially pay 25 percent of the total dues after deducting penal interests to become eligible for the registry of apartments in their respective projects, officials said.
“Developers of nearly 30 stuck projects have agreed to pay 25 percent amount of their total dues to become eligible for carrying out registries of apartments in stuck housing projects. We are also urging other realtors to take benefit of the package and secure permission from the Authority for executing registry of ready units so that homebuyers do not suffer,” a senior official of GNIDA told Moneycontrol on the condition of anonymity.
The official said that the Authority is likely to get Rs 350 crore from the developers of 30 stalled housing projects through the move. Once the initial due amount is paid, the authority will issue necessary permission and the process of registration of flats will be completed in one or two months, said officials.
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According to officials, real-estate developers collectively owe around Rs 44,700 crore to the development authorities in Gautam Budh Nagar. They owe almost Rs 26,000 crore to the Noida Authority and about Rs 14,000 crore to the Greater Noida Authority. The dues for the Yamuna Expressway Industrial Development Authority (YEIDA) stand at Rs 4,700 crore.
Under Yogi Adityanath government's rehabilitation policy, the authority also has the mandate to cancel the allotment of defaulter builders, who are unwilling to take benefit of the package and clear the dues. After cancellation of such allotments, the Authority can take over the incomplete project and blacklist the defaulter developer for five years in Noida, Greater Noida and Yamuna Expressway Authority regions.
According to a rough estimate of Noida and Greater Noida authorities, there are around 2.4 lakh stressed housing units in the region, of which around 1.2 lakh flats are yet to be delivered. Possession has been given for the remaining 1.2 lakh units, but registries are still pending. In Greater Noida alone, there are at least 96 stalled projects, comprising 75,000 units.
The Union government, in March 2023, had formed a 14-member panel headed by former CEO of NITI Aayog, Amitabh Kant, to address the issue of stuck housing projects. The committee had submitted its report in August 2023 and it was sent to states for implementation. The Uttar Pradesh government had approved the recommendations of the Centre’s panel on December 19, 2023.
On December 26, the Noida and Greater Noida Authorities have rolled out a rehabilitation package for developers of stuck or delayed housing projects in their jurisdictions, as per the recommendations of the Amitabh Kant committee.
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