Authorities to meet defaulting builders on exit from projects

The Noida and Greater Noida authorities have called a meeting of realtors to inform them about the project settlement policy, to resolve the problems in the realty sector. The state government approved the policy on December 13.

The Noida and Greater Noida authorities have called a meeting of realtors to inform them about the project settlement policy, to resolve the problems in the realty sector. The state government approved the policy on December 13.

The Noida and Greater Noida authorities have called a meeting of realtors to inform them about the project settlement policy, to resolve the problems in the realty sector. (HT File Photo)

The three authorities — Noida, Greater Noida and Yamuna Expressway — came up with the policy, citing a slowdown in the realty sector, as builders are unable to complete their projects, which is affecting lakhs of homebuyers.

The policy gives realtors an exit route from projects they are unable to execute, as well as benefits homebuyers who are waiting past the deadline for delivery of their 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 authorities informed the confederation of real estate developers’ association of India (Credai) so that the maximum number of builders can participate in the meeting and get detailed information about the new policy.

“We want to educate realtors about this (project settlement) policy and want them to make optimum use of it. Realtors also can clear their confusions pertaining the policy,” Deepak Agarwal, chief executive officer of the Noida and Greater Noida authorities, said.

In Noida, the investments of around one lakh buyers are stuck in 50 delayed projects.

There are 95 under-construction realty projects in Greater Noida. Around one lakh homebuyers in 80 of these projects are estimated to be impacted.

In the Yamuna Expressway authority area, 20 builders have failed to complete their projects and the investments of around 20,000 homebuyers is at stake.

Noida, Greater Noida and Yamuna Expressway authorities are to recover a total of around ₹25,000 crore from builders in land dues. Many have turned defaulters, citing a dip in sales of flats.

Officials said that another agenda for the meeting is to get an estimate of the land being returned; that they will resell at the current rate to recover dues.

“We will figure out how many realtors will apply (for an exit) under the policy to return undeveloped land. We will make a list of these builders. We will calculate the land we will get back and how it will impact buyers and builders financially,” Agarwal said.