Builders give scheme meant to deliver flats in stuck projects the cold shoulder
On August 24, the Noida authority had relaxed terms for issuing occupancy certificates to select stuck housing projects that fulfil certain conditions, a move that could have benefited thousands of homebuyersUpdated: Nov 28, 2017 23:08 IST
Despite the Noida authority relaxing norms for getting occupancy certificates in certain stuck housing projects, no builder has come forward to make use of the scheme.
The scheme was introduced in August to ensure that stuck housing projects get completed and buyers are able shift into their ready flats. The authority had announced that November 30 would be the last date to apply under the scheme but no builder has done so till date, officials said.
Under the scheme, released on August 24, the authority had relaxed the terms for issuing occupancy certificates to select stuck housing projects that fulfil certain conditions, a move that could have benefited thousands of homebuyers.
The new policy was for those projects where the builder has developed common facilities such as fire systems, lifts, water supply, community centre, sewage treatment plant, etc.
According to the scheme, a builder could deposit 10% of the total land dues and get registry of flats executed by paying the remaining dues flat-wise. The authority had made the changes because many builders were unable to clear land dues at one go. The authority had hoped that the relaxation would prompt builders to deliver flats early as payment was going to be staggered.
“In the three months since, no builder has applied for get occupancy certificate (OC) under the scheme. We had hoped that the builders will make use of the scheme and get the OC in order to offer possession to homebuyers. But not a single builder made use of it till date,” said Manmohan Mishra, financial controller, Noida authority.
The authority came up with this scheme so that the builders can clear some of the dues and offer possession.
For example, if a builder owes ₹100 crore to the Noida authority against a housing project that has 1,000 flats, he would have to pay ₹10 crore to offer possession and execute registry.
Against this payment, the authority will issue a temporary occupancy certificate for half the project, i.e., for 500 flats. The total land dues of ₹100 crore will be distributed among 1,000 flats or ₹10 lakh per housing unit.
Builders said they could not make use of that scheme because it was not suitable for them.
“The builders didn’t have funds to make use of this scheme. The other scheme, in which a builder can get OC tower-wise, is useful. The scheme under which a builder can get land dues rescheduled is also useful. Therefore, builders didn’t apply for this scheme,” said Amit Modi, vice-president, CREDAI, western UP.
First Published: Nov 28, 2017 23:08 IST