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Greater Noida authority gives interest waiver to 11 builders

Officials are hopeful that waiver of the interest on the principal amount (cost of group housing land) will help builders deliver stuck housing projects.

noida Updated: Feb 01, 2018 23:24 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
Noida,waiver,interest
The authority held its 111th board meeting on Thursday.(HT File)

The Greater Noida authority in its 111th board meeting on Thursday gave an interest waiver to 11 realtors whose projects are running behind schedule.

Officials are hopeful that waiver of the interest on the principal amount (cost of group housing land) will help builders deliver stuck housing projects.

The authority has defined a particular period — zero period — for which for the builders will not have to pay interest, officials said.

The builders and projects for which the waiver has been granted are Nirala Projects Private Limited in Sector 2, Nirala Infratech Private Sector Techzone-IV, Patel Advance JV in Sector Techzone-IV, Express Projects Private Limited in Sector 1, Rudra Buildtech Private Limited in Sector 1, SJP Hotel and Resorts Private Limited in Sector ETA-2, Gayatri Hospitality and Realcon Limited in Sector 1, Enticement Infrastructure Private Limited in Sector 1 and Gaursons Promoters Private Limited in Sector 16C.

In total, 42 builders had demanded an interest waiver during the zero period, when the construction of housing projects was disrupted due to land disputes between farmers and the Greater Noida authority.

Builders had contended that since the construction in this period was affected due to non-availability of land, they should not be asked to pay interest. The authority had allotted housing land after builders had deposited 10% of the total land cost. The builders were supposed to pay the remaining land cost in instalments. If a builder fails to pay the instalments, the authority imposes interest of 11% to 14%.

“We looked into each housing project for which a waiver was sought, on a case-to-case basis. The board decided to give a waiver of interest to 11 of the 42 builders who had applied. Since they had failed to undertake construction during zero period due to land disputes, we have given them the waiver,” Debasish Panda, the chief executive officer of the Greater Noida authority, said.

According to the authority’s estimates, around 10,000 flats are proposed in these 11 projects. The waiver will mean a huge revenue loss to the authority but may provide relief to buyers if these projects are finished.

“We hope that after this waiver, these builders will be able to finish their projects and deliver flats to buyers. But we cannot tell how much money the authority has waived off,” Panda said.

There are around 203 housing projects that are running behind schedule in Greater Noida. Around 1.5 lakh homebuyers have made investments in these projects.

Chief minister Yogi Adityanath has directed the Greater Noida and the Noida authorities to ensure delivery of flats without further delay, in an effort to provide relief to aggrieved homebuyers.

Box:

11 builders have been granted the waiver

Nirala Projects Private Limited in Sector 2, Nirala Infratech Private Sector Techzone-IV, Patel Advance JV in Sector Techzone-IV, Express Projects Private Limited in Sector 1, Rudra Buildtech Private Limited in Sector 1, SJP Hotel and Resorts Private Limited in Sector ETA-2, Gayatri Hospitality and Realcon Limited in Sector 1, Enticement Infrastructure Private Limited in Sector 1 and Gaursons Promoters Private Limited in Sector 16C

First Published: Feb 01, 2018 23:24 IST