Noida begins study of all stalled realty projects after Kant report

The survey will be completed in the next two weeks and the objective of the survey is to ascertain the number of such projects that have been delayed

In view of the report by the central committee, headed by former Niti Aayog chief executive officer Amitabh Kant, recommending solutions for stalled real estate projects across the country, the Noida authority has started a survey to collect details of each stalled project.

The Noida and the Greater Noida authorities together have to recover around ₹50,000 crore dues that include penal interests imposed due to the default of the payment by developers. (Sunil Ghosh/HT Photo)

The survey will be completed in the next two weeks and the objective of the survey is to ascertain the number of such projects that have been delayed due to the financial crisis.

“The survey will determine how many flats are stuck in these projects, how many units re unsold and what the current status is of each project, among others. The survey will help the authority in figuring out the current status of each delayed project and the solution each requires to safeguard the interests of homebuyers,” said Prabhas Kumar, additional chief executive officer, Noida authority.

Kant committee has recommended the formation of an effective policy that can address the issues being faced by the real estate sector across the country. It also recommended to the Uttar Pradesh government that the three authorities -- Noida, Greater Noida and the Yamuna Expressway-- should allow registry of flats without asking the defaulter developers to clear land cost dues against a housing project.

Therefore, the Noida authority has decided to figure out as to how much financial dues each of these delayed projects have against them as on date, said officials.

According to old estimates, there are at least 200 stalled realty projects, which together has around 167,000 units, which are delayed.

The Noida and the Greater Noida authorities together have to recover around ₹50,000 crore dues that include penal interests imposed due to the default of the payment by developers.

The report has recommended that the authorities should not impose penal interest and should only recover the principal amount from the developers. Apart from this, the report has recommended that the developers’ unsold inventory and undeveloped land, among other assets, be taken over by the authority as collateral thereby allowing the registry of flats that have been completed and handed over to buyers.

“The authority will determine how much unsold inventory, undeveloped land and other dispute-free assets a developer has in a project and if these can be taken as collateral to allow registry,” said Saumya Srivastava, officer on special duty, Greater Noida authority.

The Noida and the Greater Noida authorities will soon discuss the Kant committee’s report in their respective board meetings in this month and request the state government to approve the Kant report with changes, if any, so that it can be implemented, said officials.

“If implemented, this report by Amitabh Kant can address most of the issues that the sector faces today and it will also benefit homebuyers immensely,” said Amit Modi, former president, western Uttar Pradesh chapter of Confederation of Real Estate Developers Association of India (CREDAI), a realtors’ lobbying group.

Buyers said the government should attach the realtors’ personnel assets as guarantee and find a solution for their issues.

“The Uttar Pradesh Real Estate Regulatory Authority, an expert body of the government, has in its report to UP government suggested that the Noida and the Greater Noida attach the personnel assets of builders, including their houses, cars and jewellery, etc. as guarantee in cases where the developer has sold all properties, and is left with no other mortgage options. If the authorities will take personnel assets as guarantee then they can recover dues and also resolve homebuyer issues,” said RK Gupta, a buyer who is waiting for his flat since the past 10 years.