Officials of the Noida, Greater Noida and Yamuna Expressway development authorities are likely to meet in Lucknow on September 28 to resolve issues pertaining to builder dues, pending registration of flats and ways to revive stalled or delayed housing projects, in line with the recommendations of the Amitabh Kant committee report, people aware of the matter said.
Uttar Pradesh chief minister Yogi Adityanath is likely to attend the meeting along with senior officials from the housing and industry departments, the people said.
“The recommendations of the Kant panel on giving rebates and other relaxations to developers so that delayed projects could be completed will be discussed and also the independent reports prepared by the authorities on the financial implications of implementing the Kant panel recommendations will also be deliberated upon. The government may then take a call on waivers or other relief measures for builders to revive the projects and registries could start,” one person said.
The state government may decide to rationalise interest rates on builder dues or propose a moratorium on the payment of dues by developers. A decision to this effect would mean the authorities would have to forgo a portion of the money that the builders owe them.
Builder dues
According to the people, if measures such as zero period or revision of interest rates are offered, the Noida Authority may have to forgo about Rs 7,000 crore while the Greater Noida Authority may have to relinquish Rs 6,000 crore.
Under the zero-period policy, the government can waive penal interest and other dues on projects mired in legal disputes or land-related issues. The policy would apply only if developers agree to complete the projects in a specified time.
Builders owe almost Rs 45,000 crore to the three authorities. This has resulted in projects getting stalled and has taken a toll on the registration of flats.
According to officials, real estate developers 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 Authority stand at Rs 4,400 crore.
The Kant panel proposed a moratorium on payments that builders owe land-owning authorities to enable developers to improve their finances and complete delayed or stalled housing projects, with the provision that they clear their dues in stages. The committee also said that a reasonable interest rate should be charged and the focus should be on completing projects.
Scores of real estate projects are stalled or delayed and entangled in legal battles in the Supreme Court and in the National Company Law Tribunal.
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