Developers of over 40 housing projects apply for waivers

Developers of over 40 housing projects have applied for interest and penalty waivers under the ‘zero period’ policy. Officials of Noida and Greater Noida authority

Developers of over 40 housing projects have applied for interest and penalty waivers under the ‘zero period’ policy. Officials of Noida and Greater Noida authority said February 4 was the last day to apply under the scheme.

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Under zero period policy, a builder can claim interest and penalty waivers for the period when construction at a realty project was disrupted due to court cases. Now, the two authorities will assess and decide how much waiver on interest or penalty is to be allowed for each housing project. The move will benefit both builders and homebuyers, said officials.

On December 3, 2019, the UP government had approved the zero period scheme is meant for those projects, which are incomplete under certain conditions, such as due to error of the authority concerned housing land possession was not handed over, registry has not been done due to a court order or construction was disrupted, any government order that delayed registry, construction disrupted due to no road connectivity to project and the scheme is only meant for housing projects.

The waivers will be for projects scheduled to be finished by June 2021. The move is aimed to benefit over 1 lakh apartment buyers in the twin cities of Noida and Greater Noida.

“More than 20 builders have applied seeking an interest or penalty waiver. Our team of officials are examining the applications and we will soon decide the waiver amount,” Ritu Maheshwari, chief executive officer, Noida authority, said.

The builders have submitted details of their respective realty projects such as the size of the land, when land was allotted by the authority, when the map was sanctioned, how many flats or commercial units are being developed, when the project will be completed, and the court orders that disrupted the work. The builders are also mentioning the exact period for which the construction was halted, officials said.

They added that the team will examine the documents related with each project and also conduct a site inspection to decide the waiver period.

“We have received applications of around 22 developers. We will decide their cases after examining the documents,” Narendra Bhooshan, chief executive officer, Greater Noida authority, said.

Builders hope the move will expedite work on many projects.

“Once these cases will be settled and waivers granted, these developers will be eligible to arrange more funds to finish their respective projects,” Prashant Tiwari, president, Confederation of Real Estate Developers Association of India, a builders’ lobbying group, said.

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