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Yeida plans to waive penal interest on financial dues for realtors

Sep 06, 2023 11:43 PM IST

The introduction of this one-time settlement (OTS) policy would exempt realtors from penal interest and waive interest accrued during the legal battles between farmers and the authority, which disrupted construction work

The Yamuna Expressway Industrial Development Authority (Yeida) plans to introduce a new policy for realtors during its upcoming board meeting on September 12, officials aware of the matter said.

Meanwhile, realtors said that they have eagerly awaited this move, as the sector faced its worst crisis since the COVID-19 pandemic. (Representative Image)
Meanwhile, realtors said that they have eagerly awaited this move, as the sector faced its worst crisis since the COVID-19 pandemic. (Representative Image)

According to officials, Yeida is considering waiving off the penal interest on financial dues for group housing projects along the Yamuna Expressway area. Additionally, they may offer a ‘zero period’ for housing projects affected by legal disputes between the authority and farmers.

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Arun Vir Singh, Chief Executive Officer of Yeida, said, “The board is expected to discuss and decide on a one-time settlement policy for realty projects to resolve their outstanding dues. If approved, this policy will address realtors’ financial obligations, providing relief to homebuyers waiting for their units.”

The introduction of this one-time settlement (OTS) policy would exempt realtors from penal interest and waive interest accrued during the legal battles between farmers and the authority, which disrupted construction work.

Officials said that Yeida had allocated housing land in 2009-10, accepting 10% as an initial payment. Despite repeated notices, many realtors failed to clear the remaining land cost. The authority imposed normal interest on the unpaid 90% and penal interest for defaults, leading to increased financial dues.

Responding to realtors’ demands, Yeida has decided to waive penal interest, benefiting around 13 realtors in the Yamuna area and approximately 7,000 homebuyers.

Meanwhile, realtors said that they have eagerly awaited this move, as the sector faced its worst crisis since the COVID-19 pandemic.

“Without scheme like OTS offering waivers on penal interest the realtors will not be able to make payments of their dues. If the Yeida comes up with the OTS then it can bring relief to this sector,” said Amit Kumar, a developer who is member of confederation of real estate developers association of India.

Yeida also said that they aim to recover approximately 9,000 crore in financial dues from these realtors engaged in realty projects.

Under the OTS scheme, the board may require realtors to make partial payments to qualify for the waiver. “Those who fail to make part payments will not benefit from the new scheme,” said another Yeida official aware of the matter, requesting not to be named.

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  • ABOUT THE AUTHOR
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    Vinod Rajput writes on environment, infrastructure, real estate and government policies in Noida and Greater Noida. He has reported on environment and infrastructure in Delhi, Gurgaon and Panchkula in the past.

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