Noida authority extends deadline for project settlement policy | noida | Hindustan Times
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Noida authority extends deadline for project settlement policy

The policy gives realtors an exit route from projects they are unable to execute. It also benefits homebuyers who are waiting past the deadline for delivery of their flats. Under the policy, a builder can exit a housing or commercial project by surrendering the part of the plot allotted to it on which construction is yet to be started. The PSP was touted as a panacea for sick realty projects.

noida Updated: Jul 05, 2017 23:01 IST
Vinod Rajput
Only 10 of the 91 defaulters in Noida have cleared land due of Rs100 crore, owed to the Noida authority, under the PSP. These builders and other land owners, altogether, need to clear around Rs25,000 crore.
Only 10 of the 91 defaulters in Noida have cleared land due of Rs100 crore, owed to the Noida authority, under the PSP. These builders and other land owners, altogether, need to clear around Rs25,000 crore.(Burhaan Kinu/HT FILE PHOTO)

The Noida authority has decided to extend the deadline of its project settlement policy (PSP) that aims to resolve stuck realty projects. A proposal has been sent to the state government for extending the deadline by three months.

The UP government had on December 13, 2016, approved this policy to resolve multiple issues faced by builders and homebuyers. Builders opting for the policy had to submit their applications by June 15.

The policy gives realtors an exit route from projects they are unable to execute. It also benefits homebuyers who are waiting past the deadline for delivery of their flats. Under the policy, a builder can exit a housing or commercial project by surrendering the part of the plot allotted to it on which construction is yet to be started. The PSP was touted as a panacea for sick realty projects.

“As many builders want to make use of this policy, the authority has decided to extend the deadline. We have sent a proposal for extending the scheme to the state government. If the government approves it, builders will be able to apply for the scheme for three more months,” said Manmohan Mishra, financial controller of the Noida authority.

Only 10 of the 91 defaulters in Noida have cleared land due of Rs100 crore, owed to the Noida authority, under the PSP. These builders and other land owners, altogether, need to clear around Rs25,000 crore.

The authority had allotted plots after accepting 10% of the total cost and the rest was to be paid in instalments. However, builders stopped paying the land due instalments citing a dip in sales, amid the slowdown in realty sector.

“Around 80 builders are yet to be benefitted by this scheme. The authority wants to give a last opportunity to the remaining builders. If they submit their applications under the policy in next three months, they will have to deposit 25% of total default in one go and the rest in instalments,” another official said.

The authority had come up with the PSP to recover its land dues. However, only owners of two realty projects — Wave Infratech and a project by Unitech Group — have surrendered land under the scheme.