Yamuna Expressway Authority shelves its group housing scheme due to lack of bidders

For representational purpose

The Yamuna Expressway Industrial Development Authority (YEIDA) has decided to shelve its residential group housing scheme due to lack of bidders, officials privy to the development said. They added that the authority’s group housing proposal did not receive a single application from developers because of the scheme’s “strict eligibility conditions”.

In May, the Yamuna Expressway Authority, after a gap of nine years, had launched its much-awaited residential group housing plots scheme for sectors located along the expressway. The last YEIDA sector group housing scheme was launched in 2014.

“We did not receive any application for the group housing scheme. There will be no extension of the group housing scheme. The scheme has now been closed. Developers might not have come forward because of the tough eligibility criteria,” YEIDA CEO Arun Vir Singh told Moneycontrol.

Pending dues

He said that there was a clause that clearly stated that only applicants who did not have any pending dues with any of the three development authorities in Gautam Budh Nagar district would be eligible.

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YEIDA officials said that most real estate developers in the region had pending dues.

The Authority decided that the defaulter clause would not be removed from the eligibility criteria as it was felt that those who already owed dues to the authorities should not be given plots, in order to safeguard the interests of homebuyers. Consequently, the Authority decided not to extend the scheme and instead shelved it, a YEIDA official said.

Under the group housing scheme, three plots were put up for auction and the deadline was June 2. Two plots measuring 45,000 square metres (sqm) and one plot of 60,000 square metres size, all located in sector 22D, were put up for sale under the group housing scheme.

YEIDA officials said that the reserved rate of bidding for the 60,000 sqm plot was Rs 33,825 per square feet (sqft), while it was Rs 30,750 per sqft for the 45,000 sqm plot. The Authority was looking to earn around Rs 479 crore through the allotment of these group housing plots. Officials said that it is yet to be decided when the scheme will be launched again.