Noida: Defaulting builders may soon find their names on hoardings
Hoardings to be placed along roadsides and on busy intersectionsnoida Updated: May 24, 2017 22:51 IST
The Noida authority chief executive officer (CEO), Amit Mohan Prasad, has decided to name and shame real estate developers who have not cleared their land dues for a long time. The CEO has decided to put the names of all financial defaulters’ on hoardings along roads and on busy traffic intersections if they do not clear the dues soon.
According to a policy that came into effect in 2006, the builders were required to pay only 10% of the total cost of land bought from the authority. The rest was to be paid in instalments. Now, these builders are turning defaulters, leaving the authority staring at a financial crisis. The authority is struggling to recover around Rs25,000 crore in land dues from such builders.
Authority officials said builders have stopped paying instalments of land cost to the authority citing a dip in sales of flats.
“I have asked the finance department to prepare a fresh list of defaulters. Once I have the new list, I will segregate those who are deliberately not paying the land dues. They will find their names on hoardings to be installed across the city. The objective is to recover the dues and fill the authority’s coffers,” said Prasad.
The Noida authority is not sparing its own either. The authority has decided to put up online the names of serving and retired government officers who have not paid rent for government flats and bungalows. These officers owe a total of Rs200 crore as rent to the department of personnel of the Noida authority, according to officials.
The finance department has written to the department of personnel to provide specific details regarding those who have not cleared rent dues. The finance department estimates that roughly Rs200 crore needs to be recovered from IAS, PCS officers and other government employees. There are several other defaulters too who had rented government property in Noida and stopped paying rent.
“We will not spare anybody who owes money to the Noida authority. We have issued them notices asking them to pay. Those who have started making payments will not find their names on hoardings,” said Prasad.