The Uttar Pradesh government is considering a policy proposal from the Noida authority that allows a realtor to return undeveloped land in Noida and Greater Noida.
The proposed policy allows realtors to exit a project and return the land if they are unable to develop group housing or commercial projects on it and sell the same to prospective property buyers.
“We have sent this policy to the UP government for approvals and it is under consideration. The policy, which aims to revive sick projects, allows realtors to exit if they wish,” said Rama Raman, chairman of Noida and Greater Noida authorities.
Many leading realty firms that were allotted large residential and commercial plots in Noida and Greater Noida between 2006 and 2010 have failed to build projects on them.
“We will invite fresh investment for land surrendered by a realty firm. This policy is meant for large group housing and commercial plots and even partially-developed projects can be surrendered if the policy is approved.” said Raman.
“As per the policy, the authorities will return the investment made by a particular builder at the time of allotment,” said Deepak Agarwal, chief executive officer (CEO), Greater Noida authority.
The Noida and Greater Noida authorities need to recover around Rs14,000 crore in land dues from different builders for land that was allotted on instalment basis. Due to slowdown in realty sector and poor sales, many builders have been unable to pay their dues.
“The builders paid 10% of the total land cost at the time of purchase. The remainder was supposed to be paid in instalments. However, most of the builders are unable to pay the remaining costs. The exit policy will help them surrender the land and exit,” said a Noida authority official.