Noida authority to begin crackdown against defaulter builders
According to officials the authority needs to recover around Rs 20,000 crore in land dues from around 100 developers, who are building group housing and commercial projects in different sectors of the city.Updated: Aug 16, 2019 14:09 IST
The Noida authority has decided to crack down on defaulting builders who have failed to repay land dues, and has issued notices to over such 60 builders. The authority’s chief executive officer Ritu Maheshwari has directed the group housing and finance departments to take steps to recover land dues from the builders.
According to officials the authority needs to recover around Rs 20,000 crore in land dues from around 100 developers, who are building group housing and commercial projects in different sectors of the city.
“We have started reviewing the defaulting builders’ cases to recover our land dues. We are scrutinising builder’s projects on a case-by-case basis and taking appropriate measures to recover the dues. Each project has different issues, so the decision is based on merit. If any builder is not in a position to repay the dues, then we are issuing recovery notices,” Maheshwari said.
A recovery notice is issued to a defaulter only after they fail to pay or give a satisfactory response to the notices issued by the Noida authority or any government agency that needs to recover the dues.
In this process, as per protocol, the authority asks the district administration to recover the dues. Subsequently, the administration first issues a notice, giving the builder time to file a response. If the builder fails to submit a satisfactory reply, then the administration begins the process of attaching the property, auctioning the same to recover the dues and also arresting the defaulter. Recently, the administration has started recovery against two builders — Cloud-9, which failed to pay Rs 66 crore in land dues to the authority and Shubhkamna Buildtech, which could not repay Rs 78 crore in dues.
Both the builders could not be reached for comment despite repeated attempts.
Builders say they have been finding it difficult to pay land dues citing a dip in sales in the realty market. The authority had, since 2007, allotted group housing land to builders in instalments after accepting 10% percent of allotment money. The authority does not allow registry of the flats without a builder clearing their land dues, therefore hindering homebuyers as well.
“We will meet the Noida authority’s CEO on Saturday and discuss all issues related to the real estate sector. We hope that the authority will positively work on our proposals to boost the real estate sector. The sector is facing many challenges, which need to be dealt with so that the market can be revived,” said Prashant Tiwari, president of Confederation of Real Estate Developers Association of India’s western Uttar Pradesh wing.
First Published: Aug 16, 2019 14:09 IST