Project settlement policy fails to resolve sick projects in Noida
The policy gives realtors an exit route from projects they are unable to execute, as well as benefit homebuyers who are waiting past the deadline for delivery of their flats. Under the policy, a builder can exit a housing or commercial project in which construction on the allotted plot is yet to be started.noida Updated: Apr 20, 2017 10:04 IST
The project settlement policy has failed to address the concerns of homebuyers in Noida and Greater Noida. Around 40 realtors in Noida and 20 in Greater Noida had applied for relief under the policy, which was approved on December 13, 2016, but the authorities have failed to revive even one sick project.
The policy gives realtors an exit route from projects they are unable to execute, as well as benefit homebuyers who are waiting past the deadline for delivery of their flats. Under the policy, a builder can exit a housing or commercial project in which construction on the allotted plot is yet to be started.
The project settlement policy was touted as the only solution for homebuyers’ issues.
The then chief executive officer of the Noida and Greater Noida, Deepak Agarwal, had met the confederation of real estate developers association of India (CREDAI) several times on the issue but there has been no development so far.
“We are yet to do dispose of any of the housing projects under the project settlement policy. It takes time to decide on such big issues,” said Santosh Kumar Singh, officer on special duty (OSD), group housing department, Noida authority.
Many major realty firms have applied to surrender their group housing land, so that struck housing projects can be revived by interested parties. The land that they want to surrender to the Noida authority is yet to be developed but flats have been sold out to buyers.
In Noida, the investments of around one lakh homebuyers in 50 delayed projects are stuck.
There are 95 under-construction realty projects in Greater Noida. Around one lakh homebuyers in 80 of these projects are estimated to be impacted.
Under the Yamuna Expressway Industrial Development Authority (YEIDA), 20 builders have failed to complete their projects and the investment of around 20,000 homebuyers is at stake. However, none of the realtors had applied for surrendering land under the project settlement policy.
“No realtor has come forward to take benefit of the project settlement policy till date. The policy has failed to bring any relief to homebuyers so far,” Arun Vir Singh, chief executive officer of YEIDA, said.
Noida, Greater Noida and YEIDA are to recover a total of around Rs25,000 crore from builders in land dues. Many have turned defaulters, citing a dip in sales of flats.
Homebuyers were hopeful that the new government in the state will provide them relief under the new policy but there has been no development so far.
“In the last five months, the UP government and the officials of the authorities have taken no effective step to solve our problems. We are badly affected by the persisting situation,” said Danish Khan, a homebuyer.