Co-op group housing societies get five more years to finish delayed projects in Greater Noida
Authority officials said co-operative group housing societies will be given one last opportunity to deliver the projects to aggrieved buyers, who have been suffering for several years.
In a major relief to builders of delayed co-operative group housing projects, the Greater Noida authority has decided to give them five more years to finish and deliver the stuck projects. Earlier in 2011, the authority had given 15 years to co-operative group housing societies to finish and deliver housing projects to buyers. But dozens of such housing projects are behind schedule.
Authority officials said co-operative group housing societies will be given one last opportunity to deliver the projects to aggrieved buyers, who have been suffering for several years.
“We will not give any additional time to co-operative societies after the 20 years’ deadline is over. We have extended the deadline by five years because the realty sector is facing a financial crisis. We hope they deliver the delayed projects in the next five years and give relief to buyers,” Deep Chander, additional chief executive officer of the Greater Noida authority, said.
The authority had, in 2003, started allotting housing projects to co-operative societies, and they were given seven years, in the beginning, to complete construction work, obtain occupancy certificates and deliver the same to homebuyers. But most of the co-operative societies could not finish the projects in seven years. Therefore, on September 20, 2011, the authority allowed co-operative societies to finish construction work within 15 years from the date of allotment. But several co-operative societies have still not finished their projects. Now, on the co-operative societies’ request, the authority has allowed them to complete construction in 20 years from the date of allotment and deliver the projects. But they will have to pay a fee to get an extension for their respective land.
“The fee to get extension will vary from year to year. For example, if a plot was allotted on January 1, 2003, and it could not be finished by December 31, 2018, then the builder will have to pay a fee—1.20% monthly interest on the total land cost,” Chander said.
Interest on land dues
For the 16th year, the fee will be 1.20 % interest levied monthly on the total cost; for the 17th year, the fee will be 1.40 % interest levied monthly on the total cost; for the 18th year, the fee will be 1.60% interest levied monthly on the total cost; for the 19th year, the fee will be 1.80% interest levied monthly on the total cost; and for the 20th year, the fee will be 2 % interest levied monthly on the total cost, officials said.
The Greater Noida authority had allotted land to co-operative societies after taking 10% of total land cost. The remaining 90% was to be paid in instalments in seven or 15 years. Now after the new rule, the co-operative societies will get additional time to pay the land cost (a total of 20 years).
“The co-operative societies will have to pay land dues, finish development and obtain occupancy certificates in the next five years. If they will fail to do so, then the authority can cancel the land allotment,” Chander said.
