The proposed exit policy for builders in Noida and Greater Noida is expected to address the issue of delayed completion of housing projects that has been affecting homebuyers. If approved, the policy may help revive stalled housing projects, thereby benefitting buyers.
“The exit policy, if approved by the UP government, will give realtors an opportunity to return undeveloped land to the authority. It will help us in reviving sick projects as we will invite fresh investment proposals,” said Rama Raman, chairman of Noida and Greater Noida authorities.
The proposed policy will help 4.5 lakh homebuyers in Noida and Greater Noida affected by realtors’ failure to complete housing projects.
“If new players in Noida and Greater Noida pump in funds to develop undeveloped land, it will bring positivity in the realty sector, thereby helping buyers. Housing projects are stuck because many builders have not been able to sell unsold inventory that helps in raising funds. The proposed policy can bring money, hope and positivity, which will ultimately impact buyers,” said Gitambar Anand, CMD, ATS Builders and president of the Confederation of real estate developers association of India (Credai).
In Noida, 86 group housing projects have been delayed by three to four years due to the dip in sales in realty sector, affecting around one lakh buyers who had invested in 2012.
In Greater Noida too, around 3.5 lakh homebuyers could not get flats that were to be delivered from 2012 onwards. Builders could not deliver these housing projects first due to litigation over land acquisition and then due to the slump in realty sales cutting down their funds.
“The proposed exit policy will enable a builder to clear his financial liabilities by returning a piece of land. He can then deliver other projects to buyers,” said Deepak Agarwal, CEO, Greater Noida authority.
The Noida and Greater Noida authorities need to recover around `14,000 crore in land dues from different builders.
“The policy will benefit all – be it buyers, realtors or the authority. The authority will be able to recover much of its dues and invest in infrastructure projects. We will allot the reclaimed land at a new rate, raising funds for development,” said Agarwal. The authority is now identifying how much land is still lying undeveloped, he added.
“The state government should approve this policy proposal to make way for realtors to exit without delay. Realtors who are not building projects should be made to return the land. Every step that needs to be taken to benefit buyers should be taken without wasting further time,” said Sumit Bhatia who has booked flat in Sector 119, Noida.