The Confederation of real estate developers association of India (Credai), a realtors’ body has suggested that the Noida authority replicate Haryana’s policy of mortgaging a realtors’ unsold stock in lieu of land dues. The suggestion was made in order to solve the issue of delayed possession of flats that many homebuyers currently face.
There are 86 residential projects in Noida for which builders need to obtain occupancy certificate (OC) to be able to offer possession. However, most realtors are unable to complete their projects due to lack of funds resulting from poor sales and hence unable to pay the authority’s land dues, without which they are not issued an OC. As a result, homebuyers who have already paid for flats fail to either get possession of their flats or get the registry executed. Without a registry, a property cannot be legally transferred from seller to buyer.
On Wednesday, 30 realtors and top authority officials, including Rama Raman, the authority’s chief executive officer (CEO), held a meeting to discuss possible solutions. The one-and-half-hour meeting was held in the authority’s Sector 6 office.
“We need an out-of-the-box solution if we really want homebuyers to comfortably shift to their housing units and execute registries of the same. One of the suggestions is that the Noida authority introduces Haryana’s policy that allows the government to mortgage unsold stock of a realtor who lacks the funds to complete a
project,” said Getamber Anand, president, Credai (National) who mooted the idea to Raman.
“If the authority mortgages unsold stock from realtors it will immediately help 30,000 homebuyers in getting registries executed. By mortgaging unsold stock, a realtor will not have to pay land dues to the authority,” he added.
Realtors also demanded that the Noida authority not ask for clearance of pending land dues to issue OCs.
“We asked the authority to extend the period in which a realtor can pay pending land dues. We have asked for an extension because realtors could not begin construction on sites because of farmers’ agitations and the national green tribunal case, which went on for two to three years. Realtors need support from the authority if the ongoing crisis is to be addressed,” said Amit Modi, vice president, Credai (Western UP).
After listening to realtors’ proposals, Raman asked Credai to give all the suggestions in writing, which they will do by next week. He also directed all builders to form grievances cell for buyers.
“The CEO said he will look into all suggestions once realtors submit them in writing. He also instructed builders to expedite work at project sites and fast-track the process of addressing buyers’ issues. The objective of this meeting was to find a solution so that buyers do not suffer,” said SC Gaur, chief architect and town planner of the Noida authority.