The Noida, Greater Noida and Yamuna Expressway authorities will send a detailed report of all sick realty projects to the Uttar Pradesh government, which is considering approving an exit policy for the builders of such projects. The report will consist of details on 17 points and will be sent to the state government in Lucknow by September 13.
Under the proposed policy, passed by three authorities in May, any builder who is unable to complete housing or commercial projects can return the land to the government, which can in turn re-allot it to other developers. The policy aims to revive sick realty projects and will also benefit homebuyers whose money is stuck in delayed projects. Around two to three lakh homebuyers in Noida and Greater Noida are expected to be benefitted if the UP government approves the policy.
“The Greater Noida authority has already compiled a detailed report on each realty project. Now the Noida and Yamuna expressway authorities need to do it too. After reviewing the report, the UP government may take a call on the exit policy,” said Deepak Agarwal, chief executive officer, Greater Noida authority.
Top officials of Noida, Greater Noida and Yamuna Expressway authorities held a long meeting on Friday evening in Greater Noida to discuss the issue in detail.
According to officials, the three authorities will compile details pertaining to funds, land area, number of buyers who have invested, whether the builder has diverted any funds, the amount the builder has defaulted on and details of how much a builder owes banks etc. The report will then be sent to the state government.
“We will hold a meeting on Monday and prepare a report on each builder and communicate the same to the government,” said Pramod Kumar Aggarwal, chief executive officer, Noida authority.
To ensure that builders do not divert the funds collected and complete projects without further delay, the Greater Noida authority had issued an official order to open an escrow account of each builder in Greater Noida where 95 group housing projects are located.
“We are thinking of adopting the same model in Noida so that builders do not get a chance to divert funds collected from buyers in the name of completing projects,” said Aggarwal.
The Noida authority needs to recover around Rs 20,000 crore from various land allottees, including builders, who have not paid the dues citing a dip in sales. This affects homebuyers who invested their money in buying a flat as builders cannot obtain an occupation certificate (OC) without paying the dues.
“The exit policy has the potential to revive major projects of realtors who have got undeveloped land. Realty group Unitech has undeveloped land in Sector 96 and needs to pay Rs. 2,500 crore in land dues. If it returns the land to the authority, Unitech Ltd can work on other projects,” said a Noida authority official.
“The authority will deduct 15% of the total land cost and return 85% of the amount. The builder can invest this money in other projects nearing completion and benefit buyers awaiting possession,” the official added.