The Uttar Pradesh government has sought views of the chairman of Noida, Greater Noida and Yamuna Expressway authorities before approving a proposal on an ‘exit policy’ for builders.
Under the policy, approved by three authorities in May, any builder who is unable to complete housing or commercial projects can return the land to the government. Once a builder returns a land, the government can re-allot it to other developers.
The aim of the policy is to revive the sick realty projects. It will benefit homebuyers whose money is stuck in delayed projects. Around 4.5 lakh homebuyers in Noida and Greater Noida are expected to be benefited.
After approval by the three boards, the policy was sent to the Uttar Pradesh Cabinet for final approval. Now, the government has sent it to the chairman for his views. Sending the proposal to the chairman for views is not a usual practice.
Pravir Kumar, chairman of the three authorities, said, “The UP government has sent back the policy to three authorities and sought views from the chairman. Therefore, I called a meeting of the chief executive officer of the Greater Noida authority and officials from Noida and Yamuna Expressway authorities to discuss the matter. We stand by the decision taken by the boards of the three authorities.”
“The board of an authority is the supreme body to take decisions on policy matters. If the boards have approved the exit policy, we agree with it. We will communicate this to the UP government that can approve or disapprove any policy,” said Kumar.
“There are many developers who are unable to complete projects due to slowdown in the realty market. If they return the land to the government, it will help them. Also, the same land can be given to other developers who have funds to start fresh projects,” said Vipin Gaur, general manager of the Noida authority.
In Noida, 86 group housing projects are delayed by three to four years due to a slowdown in the realty sector, affecting around one lakh buyers.