Private developers in Greater Noida seek amendment in project settlement policy | noida | Hindustan Times
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Private developers in Greater Noida seek amendment in project settlement policy

The Uttar Pradesh state government had on December 13, 2016, approved the policy with an aim to help builders to finish sick realty projects as they were facing a fund crisis due to dip in sale of flats.

noida Updated: Jun 04, 2017 22:51 IST
Vinod Rajput
Developers said some of the clauses related to the financial aspects of the project settlement policy are tough and will not help in the revival of a sick realty project.
Developers said some of the clauses related to the financial aspects of the project settlement policy are tough and will not help in the revival of a sick realty project. (Sunil Ghosh/HT Photo)

The Greater Noida authority may amend the project settlement policy (PSP), which was brought in to revive struck realty projects.

Private developers from the Confederation of Real Estate Developers Association of India (CREDAI) met the Greater Noida authority CEO and demanded a few changes in the PSP.

The Uttar Pradesh state government had on December 13, 2016, approved the policy with an aim to help builders to finish sick realty projects as they were facing a fund crisis due to dip in sale of flats.

However, the policy failed to make any difference as not a single housing project has been able to take the benefit of this policy, officials said. The realty projects including housing and commercial ones were supposed to avail of the benefit of this scheme till June 15, 2017.

Many leading developers under the banner of CREDAI have on June 1 met with CEO Debasish Panda seeking his help in the revising the PSP.

“Developers said some of the clauses related to the financial aspects of the project settlement policy are tough and will not help in revival of a sick realty project. I have directed them to prepare a proposal on changes and submit the same to the authority. I will send it to the UP government for necessary approval. If the government agrees, then the amendment can be made,” Panda said.

“We will help builders, but within legal limits. If a change can ensure homebuyers get flats without further delay, then we will do everything to ensure that homebuyers do not suffer anymore,” Panda said.

CREDAI is of the view that one clause in the PSP is a hurdle in reaching a solution in a realty project if the developer is short of funds.

“As per the PSP, a developer failing to clear land dues is supposed to deposit 25% of the total land default amount to get relief and reschedule the payment of the remaining amount. We want that instead of paying 25% of the total default amount, a developer should be allowed to pay 10% of defaulted instalment. If this clause is changed, then many developers will arrange funds from banks and revive projects,” said Amit Modi, vice-president , CREDAI, western UP.

The association had also held an internal meeting of developers in its sector 63 office to discuss points for amendments.

“We will be ready with a proposal on the required amendment by June 4 and hand it over to CEO Panda,” said Modi.

The Noida authority chief executive officer Amit Mohan Prasad and the Yamuna Expressway industrial development authority CEO Arun Vir Singh have already refused to help builders by amending the PSP.