Greater Noida: Yeida offers more time to developers to pay land dues

GREATER NOIDA: Defaulter developers, who have projects along the Yamuna Expressway, have been given additional time to pay land dues

GREATER NOIDA: Defaulter developers, who have projects along the Yamuna Expressway, have been given additional time to pay land dues. However, the defaulters will have to pay 10% of the total dues latest by August 31, 2021 to be considered eligible for a non-defaulter tag. There are at least 13 such defaulters who have projects in the said area, said officials.

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“The Yamuna Expressway industrial development authority’s decision to give more time only after depositing 10% of total land dues will benefit the developers and also impact positively the homebuyers because the realty project will become eligible for additional funding. The developers desperately need hand holding by the government so that they can arrange last mile funding, finish a stuck project and deliver to buyers,” said RK Arora chairman of Supertech Limited and president of Uttar Pradesh national real estate development council.

“This option will lapse after August 31. If they want to get the scheduled of the payment of their respective land dues redone then they need to deposit 10%, after which they will get additional time to repay the defaulted amount,” said Arun Vir Singh, chief executive officer (CEO) of the Yamuna Expressway Industrial Development Authority (Yeida).

The Yeida had allotted land to these developers in 2010 on the condition that they would finish these projects in 10 years and repay the entire land cost within that time. The allotment had been done on an instalment basis after accepting 10% of the total land cost as token fee. The remaining 90% was to be paid over 10 years. The authority needs to recover around R4,000 crore from these builders.

In June 2019, the Yeida had given five years more to finish the projects. However, citing dip in sales they defaulted on payments while the projects remain unfinished, said officials.

Earlier the developers were initially supposed to pay 15% out of the total land dues to get additional time for repayment.

Seven out of 13 builders are developing townships while six are constructing group housing projects. At least 30,000 homebuyers have invested money in these projects.

“Once they pay 10% of total land dues, they will come out of the defaulter category and become eligible for additional loan from banks to finish their projects. If they manage to do so, it will benefit buyers as the realtor will be in a position to finish and deliver the units,” said Singh.

“The Yeida’s decision to give more time after depositing 10% of total land dues will benefit developers and also impact buyers positively as stuck projects will become eligible for additional funding. The developers desperately need the government’s support so that they can arrange last mile funding, finish stuck projects and deliver units to buyers,” said RK Arora, chairman of Supertech Limited and president of the Uttar Pradesh National Real Estate Development Council. (NAREDCO)