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Builder debt could affect 80,000 buyers

Already plagued by incessant interruptions by agitating farmers and litigations, the delivery of housing projects in Noida may get further delayed as developers are defaulting big-time on payment of monthly installments to the Noida authority. Vinod Rajput reports.

delhi Updated: Mar 15, 2013 00:26 IST
Vinod Rajput

Already plagued by incessant interruptions by agitating farmers and litigations, the delivery of housing projects in Noida may get further delayed as developers are defaulting big-time on payment of monthly installments to the Noida authority.

This is a further setback for more than 80,000 homebuyers who have been agonizingly waiting for possession of their flats.

As many as 30 such defaulting builders are constructing 80,000 housing units to be delivered by 2015.

Noida authority officials maintain that default in payment would delay lease deeds of flats.

"Since installment dues and interest are piling up by each month, paying such a huge amount would be a tough task for builders. Until the builders clear all their dues, we will not let the lease deeds of flats be executed," said a senior authority official.

"The authority would also not issue completion certificates to any builder before they clear all their dues. Ultimately, it will be the buyers who would suffer," he added.

Till last month, builders had Rs 3,000 crore dues in total. Now with 14% interest, the builders need to pay Rs 4,000 crore as dues to the authority.

"This month, Wave Infratech paid Rs 390 crore out of the Rs 1,100 crore installment dues. Apart from Wave, no other big player has paid such a big amount. Overall, dues are rising each month," said the official.

When contacted, Wave Group MD Rajendrakumar Panpalia said, "We will pay the remaining Rs 700 crore very soon and deliver all our projects exactly on time. We are not facing any crisis of funds as we just invested Rs 500 crore to develop an affordable housing project in Ghaziabad,"

Many prominent builders assured that they would clear up the dues before the stipulated timeframe.