36 builders in Greater Noida opt to clear land dues

The project settlement policy (PSP) gives realtors an exit route from projects they are unable to execute, as well as benefit homebuyers who are waiting past the deadline for delivery of flats.

Thirty six of 41 defaulting builders who have opted for the project settlement policy in Greater Noida have applied to get their dues payment rescheduled. The Greater Noida authority will process these applications in the next 10 days.

Under the policy, a builder can exit a housing or commercial project in which construction on the allotted plot is yet to be started.

Rescheduling dues payment will pave the way for delivering housing projects. Ajnara, Gaursons Promoters Private Limited, Gaursons Hightech Infrastructure, Nirala, Rudra Buildwell, Omaxe and Morpheus Developers private limited, among others, have applied to settle their dues. A defaulter is to pay 25% of the due to reschedule payment of the remaining amount.

The project settlement policy (PSP) gives realtors an exit route from projects they are unable to execute, as well as benefit homebuyers who are waiting past the deadline for delivery of flats.

Under the policy, a builder can exit a housing or commercial project in which construction on the allotted plot is yet to be started.

The project settlement policy was touted as the only solution for homebuyers’ issues. A defaulting builder can also settle issues to deliver their projects. The PSP is open till June 15 and builders will not be able to take benefit of this scheme unless the UP government extends the deadline.

The Greater Noida authority is to recover around ₹7,200 crore in land dues from defaulters.

“I have directed the planning and finance departments to process these 41 applications in 10 days. I have asked officials to expedite the processing of applications so that we can help builders deliver flats to homebuyers without further delay,” said Debasish Panda, chief executive officer of the Greater Noida authority.

Once the builder submits an application to reschedule payment, the file is sent to the finance and planning departments for processing.

“We are addressing each application on a case-to-case basis. In 36 projects, builders will be able to deliver 13,700 flats to homebuyers once their applications are processed,” Panda said.

“After rescheduling, a builder will be out of the defaulters’ list and can easily raise funds from banks to finish the project and obtain occupancy certificate to make way for delivery of flats to buyers,” a Greater Noida authority official said.