G Noida adopts Noida policy to expedite delivery of flats
Officials said that around 50 builders can apply under the new policy to finish stuck housing projects and expedite the delivery of flats.noida Updated: Sep 22, 2017 21:33 IST
The Greater Noida authority in its board meeting on Friday approved the decision to adopt the Noida model for payment and issuance of occupancy certificate for housing projects.
As per the Greater Noida authority’s estimate, around one lakh homebuyers are expected to be benefited by the decision if builders opt for the scheme. The move will allow staggered payment of land dues and ensure faster completion and handover of units to homebuyers.
Officials said that around 50 builders can apply under the new policy to finish stuck housing projects and expedite the delivery of flats.
“We have approved a proposal that allows the Greater Noida authority to adopt the Noida model of payment and issuance of occupancy certificate. We hope that the builders will make use of this policy and deliver flats to homebuyers,” said Debasish Panda, the chief executive officer of the Greater Noida authority.
In Noida, a builder can deposit 10% of the total land due and execute registration of flats by paying the remaining dues, per housing unit.
For example, if a builder owes Rs100 crore to the Noida authority in a housing project that has 1,000 flats, the builder will have to pay Rs10 crore for getting occupancy certificate and execute registration of properties for half of the project.
Against this payment, the authority will issue a temporary occupancy certificate for half the project—500 flats. The total land dues of Rs100 crore will be distributed across 1,000 flats, i.e, Rs10 lakh per housing unit.
Earlier, a builder had to pay land dues per tower. For example, if a builder owed Rs100 crore in land dues for a project with 1,000 flats in 10 towers, the firm had to deposit Rs10 crore per tower to deliver flats to buyers.
Similarly, in Greater Noida, builders are unable to clear land dues and obtain occupancy certificates to offer possession to homebuyers. Builders in 203 housing projects are struggling to clear Rs7,200 crore land dues to the Greater Noida authority.
“There are around 50 housing projects that are the final stage of completion but we are unable to issue occupancy certificates because the builders are unable to clear land dues. With the new policy, we hope these builders will deliver flats thereby benefiting home-buyers,” said Panda.