NCR real estate news: Developers demand more time, waivers to complete stuck housing projects
The realtors' demand came in the wake of UP govt directing officials to cancel allotment of land made to promoters who have failed to pay their financial dues
Real estate developers in Noida and Greater Noida, in a letter to the state and central government as well the Noida and Greater Noida authorities, have demanded additional time, more waivers, relief from banks and other benefits to deliver stuck housing projects in the National Capital Region (NCR).
The realtors’ demand came in the wake of the Uttar Pradesh government directing officials to cancel allotment of housing land made to promoters who have failed to pay their financial dues, despite the government announcing a policy last December offering waivers to realtors willing to pay their dues.
Read More: Almost 5 lakh housing units stalled across 44 cities, Greater Noida tops the list: PropEquity
So far, only 8,000 of 118,655 pending registries could be executed in the district.
“We have written to the ministry of housing and urban affairs, the Uttar Pradesh government, the Noida and the Greater Noida authorities, among others, requesting them to implement the Amitabh Kant committee report in totality because it has the potential to address the woes of the sector. Kant recommended that banks should not declare as non performing assets those accounts of realtors, where construction was stuck due to court cases or Covid-19. The report also said banks must not drag the realty companies to insolvency resolution process, additional time must be given to complete the stuck projects and waivers of interest for the period when the court cases disrupted construction work at site,” said RK Arora, president of Uttar Pradesh chapter of National Real Estate Development Corporation (NAREDCO), a realtors’ group.
”There are other recommendations too, which, if implemented, would help revive projects,” said Arora.
Read More: Here are 5 legal options before homebuyers if their housing project is excessively delayed
In Noida, there are 57 defaulter projects and of these, 22 have accepted the rehab package that offers a two-year zero period for the Covid pandemic from April 2020 to March 2022, giving them relief from paying interest and penal interest for the period.
Dues from builders: Here's how the numbers stack up
The authority in its report to the state government on Saturday said they have received ₹304.35 crore in dues from builders and another tranche of ₹904 crore is expected in the coming years. Altogether, 7,763 flats in 22 projects are awaiting registries.
In Greater Noida, of 98 defaulter projects, 66 have availed of benefits and paid ₹429 crore to the authority. The Greater Noida authority has to receive ₹965 crore more and execute registry of 48,776 flats.
In the Yamuna Expressway region, five of six defaulter projects have deposited ₹172 crore till now. They will pay an another ₹375 crore to the authority in the coming years. In all, registries of 6,879 flats will be executed in this region, said the report to the state government.
Also Read: 7 things real estate investors should keep in mind before buying property in Greater Noida and Noida
UP chief minister Yogi Adityanath on Saturday was apprised by the authorities that 93 of 161 projects have already availed of the revival package and this is expected to lead to the registration of over 63,000 flats within the next year.
Adityanath directed officials to enforce the punitive measures outlined in the rehabilitation package against non-compliant developers.
These include cancellation of the land allotment, sealing vacant/unallocated flats in the projects and reclaiming unconstructed/vacant areas.
“We are looking into this issue as per the law and we will follow the directions of the state government,” said Lokesh M, chief executive officer of the Noida authority.