Motgage unsold flats to help builders finish projects, Noida authority tells banks

The move is aimed at enabling developers battling funds crunch avail of loans to clear dues and finish projects

The Noida authority has advised private banks to mortgage unsold flats in order to help builders finish stuck housing projects.

The move is tipped to help homebuyers who have been bearing the brunt of unfinished projects. (Burhaan Kinu/HT FILE PHOTO)

The authority’s motive is to ensure that builders facing funds crunch can avail of loans to finish realty projects and also clear their dues to the authority. The move will benefit homebuyers who have been suffering for a long time, said officials.

The authority has already facilitated meetings of two builders — Sunshine Infrawell Private Limited and Antriksh Group — with banks. Antriksh Group needs fund for its two unfinished projects — Antriksh Golf View-I in Sector 78 and Antriksh Forest in Sector 77. Sunshine Infrawell Private Limited is yet to complete its Sunshine Helios project in Sector 78 for want of funds.

“We made bank officials and these two builders sit across the table and discuss how they can do business. We want the bank to mortgage builders’ unsold flats and give loan. With this loan, the builders will be able to clear their dues, complete stuck projects and deliver flats without any further delay,” Manmohan Mishra, financial controller of the Noida authority, said.

The authority will facilitate more such meetings with builders battling funds crunch and, thereby, help struggling homebuyers.

The two builders have given possession to homebuyers, but are unable to get flat registry executed. The Noida authority refused to get the flat registration executed, as the two builders had yet to clear combined land dues worth around ₹65 crore.

Around 800 homebuyers have moved into two residential societies developed the Antriksh Group. The builder still has 200 unsold flats in these two projects.

“We need ₹25 crore each for two projects to clear land dues of the Noida authority. Once the dues are cleared, we will obtain occupancy certificate from the authority and get the buyers’ registration done. The Noida authority is helping us get loan from three private banks. We are ready to mortgage our unsold flats,” Rakesh Yadav, CMD of Antriksh Group, said.

Read I Ready to sell assets to deliver flats, Amrapali CMD tells Noida homebuyers

The Sunshine builder has delayed the handover of units in its Sunshine Helios housing project coming up in Sector 78. The project was started in 2010 with a promise of delivery in 2013. The developer has built 406 dwelling units, but is yet to clear land dues to the authority and obtain an occupancy certificate, which is necessary for granting possession to buyers.

“The Sunshine builder needs to deposit ₹15 crore of the due immediately, if he wants to obtain the OC. Banks will help him too, as he has unsold flats,” Mishra said.