Introduction
The Greater Noida Industrial Development Authority (GNIDA) has cleared the way for the registration of 6,500 flats in various projects. Officials said that the move was fruitful, as around 30 real estate developers came forward to clear it. Their arrears under the rehabilitation package of stalled projects from the Uttar Pradesh government.
Table of Contents
- Exemption on Penalty Interest by Builders
- We Advise Taking Advantage of the Package: GNIDA Official
- Authorities Who Have Granted Necessary Permissions
- Govt Will Take a Firm Stand Against the Builders
- Government Is Sending a Strong Message
Greater Noida developers: According to officials, the rehabilitation package includes zero periods for developers. Here, penalties and interest are waived. Payment of recalculated dues will be rescheduled. Thus, registries are executed quickly. A system of co-developers will be implemented to complete the stalled housing projects.
Exemption on Penalty Interest by Builders
During the zero period, i.e., between April 1, 2020, and March 31, 2022, builders can take advantage of exemptions on penal interest. These exemptions are intended to compensate for disruptions to real estate projects caused by COVID-19 as well as for the duration of construction affected by court orders.
The waivers help reduce the financial burden on builders and provide some relief in these challenging times. According to officials, to become eligible for the registry of apartments in their respective projects, developers will need to pay 25 percent of the total dues initially.
This 25 percent payment will be after deducting penal interests. This means that developers will be required to make a payment of 25 percent of their dues, along with interest penalties, to register their apartments.
We Advise Taking Advantage of the Package: GNIDA Official
“Developers of nearly 30 stalled projects are trying to maintain registries of apartment-installed housing projects. They agreed to pay 25 percent of their total dues to qualify. We also tell other realtors to take advantage of the package. We seek permission from the authority to implement a registry of ready units. So that home buyers will not suffer,” said a senior GNIDA official.
Officials said the authority is ready to receive an amount of Rs 350 crore from developers of 30 housing projects stalled due to various reasons. The move will help the authority speed up the process of granting necessary permits to developers. This will ultimately lead to the completion of these projects.
Authorities Who Have Granted Necessary Permissions
The authority will issue the necessary permits after the developers pay the initial due amount, the official said. Besides, the officials claimed that the process of registering flats will be completed within one or two months after the necessary permissions are granted. This development is expected to bring relief to buyers who have been waiting for the completion of these projects for a long time.
The real estate developers collectively owe Rs 44,700 crore to the development authorities in Gautam Budh Nagar. They owe around Rs 26,000 crore to the Noida Authority and around Rs 14,000 crore to the Greater Noida Authority. Dues to the Yamuna Expressway Industrial Development Authority (YEIDA) are Rs. 4,700 crore.
Govt Will Take a Firm Stand Against the Builders
The government seems to be taking a tough stance against defaulting builders who are unwilling to meet their obligations. It is important to take steps to ensure accountability and justice in the construction sector. Cancellation of allotments to defaulter builders.
Taking over unfinished projects.
Government policy has taken commendable steps towards ensuring accountability and fairness in the construction industry. Under this policy, the government reserves the right to take over the incomplete project in the Noida, Greater Noida, and Yamuna Expressway Authority areas.
Government Is Sending a Strong Message
The policy aims to curb the practice of builders who take money from buyers but fail to deliver promised projects on time. The government is sending a strong message that such policies will not be tolerated.
The Government is committed to maintaining fair and safe practices in the construction industry for the benefit of consumers and builders. Overall, builders should be held accountable for their actions. This is a positive step to ensure that consumers are protected from any abuse or neglect in the construction industry.
The central government, in March 2023, decided to resolve the issue of stalled housing projects. For that, NITI Aayog has constituted a 14-member panel headed by former CEO Amitabh Kant. The committee submitted its report in August 2023 and sent it to the states for implementation. The Uttar Pradesh government accepted the Central Panel’s recommendations on December 19, 2023.
Conclusion
On December 26, Noida and Greater Noida authorities formulated a rehabilitation package for developers of stalled or delayed housing projects in their jurisdictions following the recommendations of the “Amitabh Kant” Committee. For more information, visit our Openplot website.
Also read: Noida Market Register Residential Properties Worth ₹3179 Crores in Q4 2023