Greater Noida authority notice to six builders over land dues
The Greater Noida authority said it will cancel allotment of group housing plots of six builders if they do not clear their land duesUpdated: Oct 05, 2016 01:29 IST
The Greater Noida authority on Tuesday said that it will cancel allotment of group housing plots of six builders if they do not clear their land dues.
“We have issued plot cancellation notices to these six builders, who have not shown intent of depositing land dues and get their remainder rescheduled. These six did not apply for the scheme till the last date of submitting reschedulement application, September 23,” said Deepak Agarwal, chief executive officer of the Greater Noida authority.
The authority said that these builders need to pay Rs.80 crore to get the payment of their dues rescheduled.
The Greater Noida authority is facing financial crisis as around 40 builders, who are developing 95 group housing projects in the city, are failing to pay up Rs.2,800 crore land dues.
The defaulting builders have group housing projects on 1.74 lakh square metres (sq m), 20,000 sq m, 16,000 sq m,14,000 sq m, 10,000 sq m and 4,000 sq m of prime land.
Under the policy, the authority allots land to builders and the payment is to be made on instalment basis. The builder has to deposit 10% of the total land cost at the time of allotment and the remaining amount has to be paid in instalments.
Builders are not paying the land dues to the authority, citing dip in sales of flats. This has also been troubling homebuyers, who have bought flats in group housing projects.
Homebuyers, however, are angry with the Greater Noida authority because the plot cancellation action is very late against the defaulting builders.
“Most builders have been defaulters right from the start of the project. Had the authority made each builders’ financial strength public on website right from the beginning, many buyers would not have invested their money in those projects,” said Bhuwan Chaturvedi, an activist, an activist who has been taking up homebuyers’ cause.
First Published: Oct 05, 2016 01:29 IST