Several stalled housing projects in Noida and Greater Noida have their hopes up high as a panel led by former Niti Aayog CEO Amitabh Kant has eased down dues clearance criteria. Earlier this year, the Greater Noida Authority made headlines by clearing the path for nearly 13,000 apartment registries. This move is expected to benefit a large number of stalled projects in Greater Noida. The first phase of the registrations started on March 1, 2024.
Almost 42 out of 57 developers agreed to pay 25 percent of the dues upfront to make their projects eligible for registries. Of those 42, 15 builders till now have paid the due amount. But before we talk about the new concessions and waivers offered, here's a look at the past initiatives taken by the Noida Authority to overcome stalled and delayed projects.
Past initiatives by Noida Authority for stalled housing projects
Previously, seven default builders signed a deal with Noida authorities to kickstart the housing projects that have been under wraps for several years. With this deal, the authorities aim to start the registrations of around 1,084 stalled housing projects in Noida, according to a latest news report.
These housing projects belong to seven default builders namely, M/s IITL Nimbus, M/s Capital Infraprojects, M/s Divine India Infrastructure, M/s HR Oracle Developers, M/s AIMS RG Angel Promoters, M/s Sunshine Infrawell, and M/s Gulshan Homes & Infrastructure located in sectors 78, 168, 108, 75, and 143 of Noida, as per media reports.
This move came after the Uttar Pradesh government decided to implement the Amitabh Kant Committee Report to revive the stalled housing projects in Noida in December 2023. As per authorities, many builders have paid the minimum 25 percent of the dues mandatory to start registration of the projects. The remaining builders shall be paying it in 60 days. In a collective effort, developers are prepared to pay a total of Rs 350 crore, a move that renders them eligible for the much-anticipated registry of 6,500 apartments.
Earlier this month, the Noida and Greater Noida authorities directed the real estate players to prepare their report for their financial dues for the stalled projects. With this, the authorities aim to resolve existing issues and pave the way for fresh registrations of flats.
Measures by UP government to revive stalled projects in Noida
As per news reports, there are 57,000 stalled housing projects in Noida. Realtors cite the non-availability of funds, fund diversions, and increasing dues on builders, litigations, and criminal cases against the realtors as the major reason for this delay. To revive the stalled housing projects in Noida, the Uttar Pradesh government has implemented some recommendations made by the Amitabh Kant Report. The following are the key points that have been considered by the UP government for residential projects in Noida:
- Two-year ‘Zero-period’ relief
- 3-year extension without any late fee
- Introduction of a co-developer in case, the builder is unable to complete the project
- Relaxation in conditions to mortgage
- Payment of land dues in instalments over three years
Special camps to expedite stalled project registrations
According to latest news, the UP Government has given nod to special registry camps to be set up in Noida. These camps will be open every Sunday to encourage and speed up registry of stalled housing projects. Realtors who can’t make it to the Sunday camp, will always have the option to visit the Stamps and Registration offices on other days of the week.
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Noida Authority concerned over developers’ nonchalant response
Even though the new deal has already piqued the interest of a lot of developers, concerns regarding the actual execution is still worrying the Noida Authority. Out of 57 realtors, only 13 has stepped forward with their consent letters so far. Even notable builders like Omaxe, Aims Max Gardenia, and Pan Realtors are yet to show up with their consent.
Tired of waiting around, the Noida Authority has finally decided post February 22nd, 2024, realtors without a consent will not be eligible for any concessions and waivers. It would be assumed that developers without consent did not agree to the proposed conditions, and thus, would need to pay their dues in full.
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What is Amitabh Kant Committee Report?
Headed by Amitabh Kant, former Niti Aayog CEO and G20 Sherpas, the Amitabh Kant Committee was constituted by the Union Ministry of Housing and Urban Affairs (MoHUA). The committee aimed to offer recommendations for housing projects stuck for possession and registrations over a decade. The Uttar Pradesh cabinet accepted two recommendations of the committee, thus offering immediate possession and registry to home buyers.
The committee has highlighted that one of the major reasons for the delay in real estate projects is the lack of financial viability. It further stated that the Indian Bank Association (IBA) has found that out of 4.12 lakh stressed projects, 2.40 lakh projects are situated in National Capital Region (NCR). If the government solves the underlying issue of 75 percent of the stalled housing projects in Noida, then it will add 3 lakh housing units to the real estate sector.
This will impact the middle and lower-middle-class groups who have been waiting for the possession of their homes for decades. Additionally, it will play a substantial role in boosting the growth of the economy.
Latest update (April 2024)
At present, 42 out of 57 builder groups have expressed their willingness to clear the dues to the Noida Authority. About 15 of them have already deposited about 25 percent of the dues leading officials to begin registration. Out of the 1500 units slated to be registered, 320 are already done. As soon as the rest of the 27 builders deposit the amount, the registration process can start for almost 7500 units.
In a recent meeting headed by Lokesh M, the Chief Executive Officer (CEO) of the Noida Authority, officials deliberated on ways to register stalled real estate projects. The possibility of letting developers register the units by partial clearance of dues was also discussed. Currently, the authority aims to focus on the interest of the long-suffering homebuyers. To that end, the CEO has instructed officials to hold meetings with the builders to convince them to pay their outstanding amount. A few of such builders include Mahagun Builders, Prateek Buildtech, Great Value Builder Private Limited, RG Builders and Divine Residency, among others.
March 2024
The Noida Authority will start registering stalled housing projects on March 1 at the camp set up at Express Zenith Society in Sector 77, Noida. The officials are expecting about 100 registries on the first day, with over 13,000 registries targeted in the long term.
The first camp started within a week of the authority’s meeting with the Confederation of Real Estate Developers' Associations of India (CREDAI) regarding the Amitabh Kant Committee report. As per the government order received on December 21, 2023, the Noida Authority had reached out to the CREDAI officials. The former had requested all the builders involved to deposit 25 percent of their dues to execute the sublease document for the homebuyers.
Going by the statements of Dinesh Gupta, the secretary of CREDAI Western Uttar Pradesh, nearly all the 57 developers with projects in Noida have now agreed to the proposition. Though the local authority has not entirely accepted the recommendations of the Amitabh Kant Committee report, the CREDAI is ready to accept the relief. The relief package includes a zero-period interest waiver (for delays during the two Covid years).
Additionally, the developers would receive a maximum benefit of up to 15 or 20 percent of the total dues. Reports suggest that until the final week of February, around Rs 70 to Rs 80 crore was deposited with the Noida Authority by the builders. About Rs 1,000 crore is expected to be deposited in the days to come, thereby speeding up the registration of nearly 5,000 to 6,000 flats.
See our latest webstory on Registration to Begin for Over 6,000 Flats in Greater Noida! Check Out This Latest Update.
