Noida: Authorities to waive off interest for litigation period
Builders were demanding an interest waiver for the period when construction was disrupted due to land disputesnoida Updated: Nov 09, 2017 23:17 IST
The Noida and Greater Noida authorities have decided to give an interest waiver on the outstanding land dues to builders whose housing projects got delayed due to land disputes.
The move comes after the Uttar Pradesh state government-appointed three-minister committee of industries minister Satish Mahana, urban development minister Suresh Khanna and minister for state for sugar cane and industry Suresh Rana approved the waiver.
Builders were demanding an interest waiver for the period when construction was disrupted due to land disputes between the government and farmers whose land was acquired for development and realty projects.
“The committee has allowed us to look into applications of builders, who are seeking a waiver for the period when their projects were affected due to court cases. In the past as well, the authority board took decisions to resolve such cases but it could not be executed. Now, we will look into this issue on a case-to-case basis,” said Alok Tandon, chief executive officer of the Noida authority.
In Noida, there are around 10 big housing projects for which interest waiver for the period has been sought. The realtors alleged that they failed to get possession of the land on time due to ongoing cases.
Many builders failed to finish their housing projects as per the scheduled deadline because farmers had challenged the land acquisition by the respective authorities and filed pleas in the Allahabad high court and the Supreme Court.
The case between the Noida authority and farmers pertaining to group housing land took several years to be resolved. In some cases, the cases dragged on for three-four years. During this period, builders were forced to suspend construction at the site due to high court and Supreme Court orders.
The builders were alloted group housing land against payment to be made in instalments. If they defaulted on payment, they had to pay 11%-14% interest on land dues. The builders argued that since their realty projects got affected due to the land dispute between the government and the farmers, the interest must be waived off.
In comparison to Noida, many more projects in Greater Noida were stuck due to litigation. Around 30 builders are claiming interest waiver on the basis that their work was disrupted.
“We have a committee that is looking into such cases and proposals submitted by builders for a waiver,” said Debasish Panda, chief executive officer of the Greater Noida authority.
Builders said that if the interest waiver is given, it will help them resolve issues related to flat delivery.
“The government must look into the cases where construction was disrupted due to court orders in response to farmers’ applications. Because in these cases, builders were not at fault,” said Amit Modi, vice-president of the Confederation of Real Estate Developers’ Associations of India (western UP) and director of ABA Corp.
Six projects of Amrapali Group in Greater Noida West and two in Noida were caught up in litigation and thereby, construction work was disrupted. The builder is demanding an interest waiver for the period when work was affected due to litigation.
“If the authorities give us interest waiver for the period when work was halted due to the dispute between the farmers and the authorities, our projects will be benefited. We are hopeful of delivering around 30,000 flats and providing relief to homebuyers if the interest waiver is provided. Not only Amrapali, but other builders will also be immensely benefited,” said Shiv Priya, director, Amrapali Group.