G Noida introduces rebate scheme for defaulters willing to clear arrears

Move is aimed at encouraging defaulting land allottees, including builders, to clear their dues and finish the stuck housing projects at the earliest

The Greater Noida authority, in its 110th board meeting held on Monday, decided to give rebate to all financial defaulters, including builders, provided they clear their total land dues.

As per policy, the Greater Noida authority had, since 2007 onwards, allotted group housing land against payment on instalments basis. (Sunil Ghosh/HT FILE)

“If the allottees, including builders, clear entire dues at one go, the authority will give a rebate of 5%. For example, if a builder or individual allottee deposits ₹100 crore defaulted amount at one go, they will get a rebate of ₹5 crore upfront,” Debasish Panda, chief executive officer of the Greater Noida authority, said.

The move is to encourage defaulting land allottees, including builders, to clear their dues and finish the stuck housing projects without any further delay.

Of the 203 stuck housing projects, around 80 are in critical state, the officials said. The authority struggles to recover around ₹7,200 crore from land allottees, including builders.

“We hope that now the defaulting land allottees, including builders, will clear their dues and derive the benefit from this new scheme. If the allottee pays 100 per cent of dues, we will offer 5 per cent rebate. If the allottee pays 75 per cent of land dues, he/she will be offered a 3.5 percent rebate on the total dues. Those clearing 50 per cent of their dues, will be offered 2 per cent rebate at the time of payment,” Panda said.

As per policy, the Greater Noida authority had, since 2007 onwards, allotted group housing land against payment on instalments basis. It means the builder was supposed to pay 10 per cent of total land cost at the time of allotment. He was to pay the remaining 90 per cent in instalments. Most of the builders are defaulting on the payment of instalments.

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Builders, however, feel the rebate will not benefit them much and will not help solve the issue.

“The state government will first have to rationalise the land dues of builders, as the Greater Noida authority has added huge interest component to the principal amount of each builder. As a result, the defaulted amount has increased manifold in most cases. The authority should first rationalise the interest amount and then offer rebate. Without rationalisation, the rebate on interest will mean nothing. We will take up this issue with the government soon,” said Getambar Anand, chairman and managing director, ATS Builders and president of confederation of real estate developers association of India (CREDAI), a realtors’ body.