Greater Noida authority issues notice to 99 builders
The authority had sold its group housing land to builders for housing projects on an instalment basis.noida Updated: Oct 01, 2017 21:41 IST
The Greater Noida authority on Sunday said it has issued notices to 99 defaulting builders and around 1,000 individual plot allottees, who failed to clear their dues.
The authority had sold its group housing land to builders for housing projects on an instalment basis. The builders had paid 10% of total land cost at the time of allotment and are supposed to clear remaining 90% of land cost in instalments.
The builders are failing to clear land dues and also finish projects, thereby, troubling thousands of homebuyers. If a builder defaults on paying the instalments, then the authority charges a 12% interest on the principal amount. Similarly, 1,000 individual allottees, who bought residential and industrial plots also failed to pay their instalments on time, thereby turning defaulters. These individual allottees had bought plots on instalments basis too.
“We have issued a public notice to builders and allottees asking them to either pay their respective dues or face strict legal action. If they will not pay their instalments in the next 15 days, then the authority will cancel the allotment of their land,” said Bal Krishan Tripathi, additional chief executive officer of the Greater Noida authority.
The authority has been struggling to recover around ₹4,346 crore dues from the builders alone.
The authority is also yet to recover around ₹7,200 crore from all its allottees, including builders and individual allottees, who bought residential, industrial, institutional or commercial property from the government.
“Builders say that there is a slowdown in the realty market. Therefore, there is no buyer for the flats or shops. As a result, they are failing to raise money and pay up the dues,” said an authority official. Currently, about 203 housing projects are being constructed in Greater Noida. Of 203, developers of 82 housing projects have not submitted their action plan of the delivery of their respective housing projects to the authority.
“It means that the authority does not know when these 82 housing projects will be delivered to home-buyers,” the official said.