Under pressure from the builders, the Greater Noida authority removed the list of defaulter builders’ list from its website that was posted barely a week back.
On September 6, the authority had made defaulter builders’ names public on its website, for homebuyers use. The authority said they removed the list of defaulter builders as some of them complained that banks started troubling them. However, the Noida authority officials denied any pressure from the builders.
“There is no pressure at all from builders. We have removed it because we want to revise the same. After we put the details of defaulter builders on website of 95 project owners (builders), 48 have submitted applications to clear land dues. If these builders clear dues, we will compile a fresh list and put the same online again,” said Deepak Agarwal, chief executive officer of the Greater Noida authority.
Initially, the authority made public a list of 164 group housing projects, which together owe R 4,500 crore (including interest on default). Later, they revised the list and said there were 95 defaulter group housing projects.
“If builders will clear 10 per cent of defaulted amount by September 22 and get payment of the remaining land dues rescheduled, we will remove them from the defaulters’ list,” said Agarwal.
If 48 builders, who have shown intent to pay dues deposit 10 per cent of total default, the authority will get around Rs 700 crore to fuel development projects.
Homebuyers said the details of the defaulter builders on the website are helpful to buyers who want to ensure the financial stability of a builder before buying a property.
“Homebuyers have stopped payment of instalments of flats to builders because the builders have lost trust as they divert collected amount (from buyers) into other projects, delaying the already launched group housing projects. If the list of defaulter builders is made public, prospective buyers will not be cheated,” said Indrish Gupta, founder of Noida Extension flat owners’ welfare association.
To ensure builders do not divert collected fund the authority is asking builders to open joint escrow accounts.
“After the defaulter list was out, relationship between banks and builders got sour. If it continues, builders will further suffer and so do the under construction projects, troubling buyers who have bought flats,” said another Greater Noida authority official.
THE TOP 10 DEFAULTERS*
Amrapali Group: Rs 1304 crore
Unitech Ltd: Rs 280 crore
Omaxe Constructions Ltd: Rs 156 crore
ATS infrastructure Ltd: Rs 144 crore
Panchsheel Buildtech Pvt: Rs 112 crore
Rudra Buildwell Projects Pvt Ltd: Rs 76 crore
Asteroid Shelters Limited: Rs 68 crore
Shubhkamna Buildtech Pvt Ltd: Rs 24 crore
Patel Advance JU: Rs 88 crore
Sam India housing: Rs 52 crore
* Source: Greater Noida Authority as on September 6, 2016