Hope for Noida homebuyers as Amrapali given 2 years by UP govt panel to finish projects
Amrapali, Jaypee Infratech and Unitech groups haven’t been able to finish projects as the real estate sector is suffering a slump, especially after high-value banknotes were scrapped last November.Updated: Sep 01, 2017 00:38 IST
A three-member committee of Uttar Pradesh ministers has given a two-year deadline to Amrapali group to finish its 10 residential projects in Noida and Greater Noida.
Also, homebuyers need not pay until the group’s projects are ready for possession.
“There are nearly 40,000 homebuyers whose investments are struck in various Amrapali housing projects. We have decided to give them relief … They will pay the remaining amount only when the builder readies the project for possession,” said state urban housing minister Suresh Khanna, who heads the committee.
The government’s intervention held out hope to thousands of distressed homebuyers of Amrapali, Jaypee Infratech and Unitech groups, which haven’t been able to finish projects as the real estate sector is suffering a slump, especially after high-value banknotes were scrapped last November in a blitz against illegal cash and corruption.
The National Company Law Tribunal had admitted an insolvency plea by IDBI Bank against Jaypee.
Khanna, who met representatives of real estate companies, said Jaypee had assured them that it will deliver 6,000 flats annually. Also, help is on the way for buyers of Unitech projects in Noida and Greater Noida. “Unitech is surrendering its land. Once its application is processed, the buyers will get relief,” the minister said.
Amrapali assured buyers it will complete the flats. “Buyers need not worry, we will deliver the flats,” said Shiv Priya, the group’s director.
The committee constituted by chief minister Yogi Adityanath is likely to visit Noida again on September 14 or 15 to assess the situation and find solutions.
The Confederation of Real Estate Developers Association of India (CREDAI), an association of private builders, proposed to the government that small companies are willing to take over Amrapali’s unfinished projects.
“It has suggested that smaller developers can become co-developers to finish the Amrapali projects. We need to have more discussions and need to identify the co-developers,” Khanna said.
Amrapali is open to the idea.
“In Noida, we have 10,000 square metres of undeveloped land in Princely Estate and 20,000 square metre in Silicon City. Co-developers can build 4,000 flats and earn profits, provided the Noida authority allows us floor area ration that is applicable to our project,” said Shiv Priya.
Homebuyers of Amrapali are unhappy with this solution.
“The idea of co-developer was tried and tested by the builder as well as the authority in the past. It failed. We will end our protest only after the minister gives it in writing that the government will deliver us flats,” said Hitesh Nakashi, a homebuyer.
Amrapali needs to deliver 40,000 flats in its 10 housing projects in Noida and Greater Noida. The company cited dip in sales amid slowdown in the sector for the unfinished projects.