After Uttar Pradesh chief minister Akhilesh Yadav’s directive to address buyers’ issues, Noida authority chief executive officer Rama Raman on Monday held a meeting with his team to come up with solutions.
But it is not going to be an easy task.
Builders are unable to pay around Rs 300 crore land dues to be eligible for getting occupation certificates, said officials. Without an occupation certificate mandatory before getting possession of a flat, buyers cannot carry out the registration to transfer ownership from the builder to their name.
“We are trying to find a viable solution,” said Rama Raman.
In Noida, 50,000-70,000 home buyers are unable to get the registration of their flats done due to the failure of builders in paying land dues to the Noida authority that had allotted land for residential projects from 2006 to 2009.
These buyers have been suffering for the last 4-5 years. The UP chief minister had to intervene only after buyers in one of the residential projects took to microblogging site Twitter to register their protest.
“The chief minister is very serious about addressing the issues of home buyers. That is the reason he has issued instructions to the Noida authority and other officials concerned,” said Navneet Sehgal, principal secretary, UP information department.
If builders continue to fail in raising funds to pay land dues to the authority, the issue will not be confined to these 50,000-70000 property buyers only. It will affect others too.
According to the authority, there are a total of 127 under construction residential projects in Noida. Of these, 86 projects have not got occupation certificates till April 18, 2016. Twenty-four residential projects are those in which 50,000-70,000 buyers are already suffering. Around another 80,000 buyers will face issues once they get ready for the registration.
Builders of these 127 projects together need to pay Rs 7,200 crore land dues to the authority. Builders failing to raise funds due to poor sales in the last 2-3 years said the authority should not levy interest on the default amount.
“If the Noida authority wants to benefit these 50,000-70,000 home buyers, who want to get registry done immediately then it should recover land dues in small instalments,” said Manoj Rai, chairman of Gardenia Group that has Rs 100 crore dues to pay. The Gardenai Group in has allowed possession to 1300 buyers in its sector 46 project without an occupation certificate.
Anil Kumar Sharma, CMD of Amrapali Group, said, “The Noida authority should come up with an amnesty scheme because there is an economic slowdown going on. The authority can mortgage unsold flats in lieu of money in a particular building to offer occupation.”