Officials of the Noida authority said that it will not be easy to resolve the issues in each stuck housing project in the city after the first day of meeting with realtor and buyers of Amrapali Group.
In Amrapali Group’s Zodiac project, the builder needs to clear Rs201 crore in land dues for homebuyers to get the property registration executed and also for the builder to provide finishing touches.
To make a housing project eligible for occupancy certificate (mandatory formality before executing the registration of a flat buyer, realtor and the authority), a realtor has to clear financial dues.
“The financial dues can only be cleared if the realtor pays the default amount. We cannot issue an OC for a project before financial dues are cleared,” Shishir Singh, the additional chief executive officer of the Noida authority, said.
Realtors are citing a dip in sales of flats due to the slowdown in the realty sector for not clearing the dues.
“The realtor has collected money from buyers and diverted our payments into other businesses, delaying our project. Now, only a few buyers, 4% to 5%, are to make payment for flats in Zodiac. Therefore, the builders will have to arrange funds. The realtor will do so if the authority will pressurise them,” Danish Khan, a buyer in Zodiac housing project, said.
Amrapali Group’s director, Shiv Priya, however, said that he will clear financial dues if the authority gives them a waiver.
“We will arrange around Rs100 crore from homebuyers and sell our stock. We are seeking a Rs100-crore waiver for the 2-year period when our project got stuck after farmers had filed a court case. We will finish the project soon. If the authority will not waive off Rs100 crore, we will move the court for relief. Our work got struck due to farmers’ agitation for 2 years, over the land dispute,” said Shiv Priya.
Deepak Agarwal, the chief executive officer of the Noida and Greater Noida authorities, said, “If they have applied for a Rs100 crore waiver, I will look into it and take appropriate decision on it as per rules.”
The Noida, Greater Noida and Yamuna Expressway authorities are to recover a total of around ₹25,000 crore from builders in land dues. Many have turned defaulters, citing a dip in sales of flats.
“We can solve issues in many housing projects by setting up escrow accounts. Buyers can deposit the remaining flat cost in the account. Since the control of the account will remain in the hands of the buyers and the authority, the builder will use the money collected in finishing the project instead of diverting it. We will try to provide relief to homebuyers facing issues,” Agarwal said.