Cushman & Wakefield roped in to resolve UP land dues stalemate, stalled projects

For representational purpose

The Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has appointed Cushman & Wakefield to help resolve issues of dues owed by developers and revival of stalled projects in Noida and Greater Noida, officials privy to the development told Moneycontrol.

Builders in the state owe an estimated Rs 40,000 crore to the Noida and Greater Noida authorities and the Yamuna Expressway Industrial Development Authority in the form of premium, interest, and penal interest against plots allotted for real estate projects. Thousands of homebuyers in Noida and Greater Noida have been unable to register their homes because the builders have not paid their dues.

UPRERA chairman Rajive Kumar told Moneycontrol in an interview earlier that a consultant had been hired to carry out an in-depth analysis of the projects in Noida and Greater Noida and come up with possible solutions so that homebuyers can get their houses expeditiously. He said the consultant will submit its report this month, after which UPRERA, in consultation with the state government, would take a decision on the matter.

Another official at the regulator said that apart from surveying disputed or stalled projects, Cushman & Wakefield will find out the reasons for non-payment of dues and suggest a possible roadmap to recover them.

“Non-payment of dues by builders is one of the driving forces behind disputed projects in Noida and Greater Noida. So both the issues are interlinked and ultimately homebuyers are suffering. This is UPRERA’s initiative to end this logjam,” the official said.

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A Noida Authority official confirmed that Cushman & Wakefield has been roped in by UPRERA.

Also Read: Only 16,800 homebuyers could get flats registered in Gautam Budh Nagar until February 2023: Data

An email sent to Cushman & Wakefield seeking its comment on the matter did not yield an immediate response. The copy will be updated if there comes any response.

Rescheduled payment policy

The Noida and Greater Noida authorities have also introduced a revised payment schedule for builders. According to officials from both the authorities, about 30 defaulters – 10 in Noida and 20 in Greater Noida – have shown interest in the policy and have come forward to reschedule their payments.

Also Read: Noida Authority to issue recovery certificates against defaulter builders, upload information on website

They paid 10 percent of the initial amount and the remaining dues will be paid in instalments over two years. This will open the process of registrations in the 30 projects, officials said, without identifying the builders.

Officials said Ritu Maheshwari, the CEO of the Noida Authority and the Greater Noida Industrial Development Authority, has ordered a crackdown on builders with pending dues who have not opted for the rescheduled payment policy. The authorities have been instructed to seal buildings under construction, cancel the land allotment to defaulter builders and take over their projects.

Consultation with stakeholders

An UPRERA official said the consultant has sought representation from the Confederation of Real Estate Developers' Association of India (CREDAI) and the National Real Estate Development Council (NAREDCO) over the issue of clearing pending dues.

He said UPRERA officials are likely to meet representatives of developer bodies and officials of the Noida and Greater Noida authorities to discuss the matter on April 6.

Earlier this week, the Uttar Pradesh chapter of NAREDCO asked the state government for relief on the issue of payment of pending land dues. It wrote to UP Infrastructure and Industrial Development Commissioner Manoj Kumar Singh, requesting him to direct the department to adopt a “developer-friendly policy” for settling land dues.

The developers suggested that the UP government adopt a one-time settlement scheme along the lines of the one in Haryana, or the Vivad Se Viswas scheme announced in the Union Budget 2023 to help builders clear their liabilities and keep projects viable.

Also Read: UPRERA imposes Rs 1.39 crore penalty on 13 developers over non-compliance of orders