Noida to give nod for execution of registries of 3,000 flats in 31 unfinished projects

The authority has decided to take stern legal action, including a forensic audit, plot cancellation and seizure of assets, against realtors, who will not use this new policy to pave the way for a solution to the woes of homebuyers

The Noida authority on Monday said it is likely to issue permission for execution of registry of at least 3,000 ready apartments in 31 finished housing projects by offering them penal interest waivers under the new state government policy announced on December 19 to address the woes being faced by the real estate sector.

The authority is carrying out a physical survey of each stalled housing project to ascertain the number of units sold and unsold, stage of construction, unencumbered assets in a project, reason for delay and solution, among others. (HT Photo)

The realtors of these 31 complete stalled housing projects have shown their intent to pay the land cost dues, after penal interest deductions, to become eligible for registries in the name of apartment buyers, who have been suffering for several years.

However, the authority has decided to take stern legal action, including a forensic audit, plot cancellation and seizure of assets, against realtors, who will not use this new policy to pave the way for a solution to the woes of homebuyers, said officials.

The authority is carrying out a physical survey of each stalled housing project to ascertain the number of units sold and unsold, stage of construction, unencumbered assets in a project, reason for delay and solution, among others. Once the survey is ready, the authority will devise a method to address the issues of each project, on a case-to-case basis.

“At least 20 of 31 complete housing projects have financial dues ranging from ₹3 crore to ₹100 crore and these are ready to use the scheme and obtain registry permission to offer relief to homebuyers. And the remaining 11 have dues below ₹1 crore and they will easily opt for the policy to obtain registry permission,” said a Noida authority official, asking not to be named.

“But the remaining 26 housing projects, which have around ₹6,000 crore financial dues in all, and some of them have dues in the range of ₹380 crore to ₹1,600 crore. These realtors do not seem in a mood to come forward to pay the dues and become eligible for registration,” the official said.

“These realtors have multiple projects --some of them in good condition and some part of 31 stalled ones. If they will not pay up dues and use the policy, then the government will blacklist them, seize their assets and recover the dues to find a solution to buyers’ woes,” the official said.

The authority said at least 35 of 51 realtors, who have come forward, have shown their intent to use the scheme and pay the dues to become eligible for flat registration. There are a total of 96 stalled projects in Greater Noida, affecting around 75,000 apartment buyers.

“We are meeting with all realtors to resolve the financial issues. We hope that most of these developers will use the scheme and become eligible for flat registration,” said Saumya Srivastava, additional chief executive officer, Greater Noida authority.

The Confederation of Real Estate Developers Association of India (CREDAI) western UP secretary Dinesh Gupta said, “We hope that the new policy works out well and address the issues being faced by the realty sector.”