Noida facilitates meeting between builders and bankers

Meeting aims to get bankers to lend realtors money and help revive stuck housing projects so that they can deliver homebuyers’ flats

The chief executive officer of the Noida authority, Amit Mohan Prasad, on Tuesday called a meeting of builders and bankers to look for ways to revive stuck housing projects in its jurisdiction. The meeting was held in the authority’s Sector 6 administrative building.

Thousands of homebuyers have been suffering due to delayed delivery of flats as builders have failed to finish projects in time citing a fund crunch. (Burhaan Kinu/HT File Photo)

There are 65 builders who have launched 91 projects in Noida, of which developers of 75 projects have defaulted on paying land dues. Together, they owe the Noida authority Rs9,993.10 crore.

Prasad hoped that if bankers help builders with their financial crisis, many developers will be able to resume construction and finish housing projects to deliver flats to homebuyers. Thousands of homebuyers have been suffering due to delayed delivery of flats as builders have failed to finish projects in time citing a fund crunch amid slowdown in the realty sector.

“Earlier, I had held a meeting with the bankers separately and discussed the issues preventing them from funding realty projects. Today (on Tuesday), I facilitated the meeting between builders and bankers and the bankers are positive about helping the builders by lending them money,” said Prasad.

Banks stopped lending to developers in Noida as they fear not getting their non-repayment of loans due to the financial crisis the builders are facing due to flat sales being very low, according to Noida authority officials.

However, Prasad said, “Banks have shown a positive outlook towards builders and have agreed to help. Both parties are discussing solutions in great detail, but reaching a final solution is not easy and will take a long time. Also, each stuck housing project requires a different solution. So it will take time to resume construction and deliver flats,” said Prasad.

The authority is looking for ways to revive struck realty projects as chief minister Yogi Adityanath had directed officials to address homebuyers’ issues. UP industries minister Satish Mahana, who is scheduled to visit Noida on June 28, is also to review progress on addressing these issues.

The realtors’ body Confederation of real estate developers association of India (Credai) welcomed the authority’s move.

“It is a good initiative by Noida authority CEO Amit Mohan Prasad. If the authority supports the builders in this manner, we can address the prevailing issues together and deliver flats to buyers,” said Getamber Anand, president, Credai.