Greater Noida: Interest on default amount for Yamuna eway plot allottees reduced

The move, which will benefit 32,000 property allottees who bought properties from 2009 to 2021, will be open for the people from October 1 to November 30, 2021, according to the officials

In a major relief to plot allottees, the Yamuna Expressway Industrial Development Authority (Yeida) has brought a one-time settlement (OTS) scheme by reducing the rate of interest on the defaulting amount for the plot allottees. Plot owners, except realtors, who own group housing land, will now have to pay a lesser amount for defaulting, officials said on Friday.

On the defaulted amount, Yamuna Expressway Industrial Development Authority imposes a compound interest up to 15% or even higher, instead of a simple interest such as 8.5%. (SUNIL GHOSH/HT ARCHIVE)

The move came after Uttar Pradesh chief minister Yogi Adityanath directed Yeida to only levy simple interest on a defaulted amount, and not a compound interest. According to the rules, Yeida considers a plot or flat allottee as a defaulter if he or she fails to pay three installments at least. On the defaulted amount, Yeida imposes a compound interest up to 15% or even higher, instead of a simple interest such as 8.5%, they said.

The move, which will benefit 32,000 property allottees who bought properties from 2009 to 2021, will be open for the people from October 1 to November 30, 2021, according to the officials.

“Property allottees will have to pay a compound interest on the defaulting amount after November-end. If they want to avail the benefit of the scheme, they must deposit 30% of the total default upfront between October 1 and November 30,” said Arun Vir Singh, chief executive officer (CEO), Yeida.

Yeida allots properties on an installment basis: It first takes 30% of a property’s total cost, and then the remaining 70% in installments. If the defaulting amount keeps increasing, the authority, too, increases the compound interest, which the plot allottees claim to be a “financial hardship” for them. Thus, the Uttar Pradesh government introduced the OTS scheme to provide relief to the people amidst the Covid-19 crisis, said the officials.

Many plot allottees have welcomed the move. “We have been asking for an interest waiver for the past two years, amidst the coronavirus pandemic. We have also demanded a waiver of interest for a period, as the authority delayed possession of plots. Yeida has finally given a waiver on the compound interest. It is a welcome step,” said Rishabh Nigam, secretary, Yamuna Expressway entrepreneurs’ association (YEEA).