Noida authority to penalise builders delaying property registration

Meanwhile, the Noida authority maintained that they will levy a penalty of ₹50 per day to a builder who fails to executive registry of a flat within 15 months of getting occupation certificate if the flat is 100 square metres or less.

During its 195th board meeting held in the Sector 6 administrative office on Thursday, the Noida authority decided to impose a penalty against builders if they fail to execute the registry of a flat within 15 months of issuance of occupancy certificate to a housing tower. The authority has also decided to reduce the rate of interest imposed on loans that it has given to the Greater Noida authority, the Agra development authority and other authorities in the state.

The authority has also decided to allow builders to pay land dues in installments and get the payment of remaining dues rescheduled by December 31 (HT File)

The Noida authority has given a loans of around ₹4000 crore and ₹200 crore to the Greater Noida authority and the Yamuna expressway authority respectively. With these two authorities facing a fund crisis amid the economic slowdown in the realty sector, around 300 builders have, in turn, failed to pay land dues worth ₹10,000 crore to the Greater Noida authority and the Yamuna expressway authority. Hence, officials said, the Noida authority has decided to lower the interest rates. “We have reduced the interest rate from the existing 10.5 % monthly to eight per cent per quarter. Now, the two authorities will have to pay less interest. We have not given any reduction on interest to builders. The state government will decide on builders’ issues,” said Alok Tandon, chief executive officer, Noida authority.

The authority has also decided to allow builders to pay land dues in installments and get the payment of remaining dues rescheduled by December 31. The Noida authority has to recover around ₹20,000 crore.