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Noida: UP govt seeks report on interest waiver to builders

Since 2013, over a 100 builders in Noida and Greater Noida areas have sought waiver of their interest stating that their projects were stuck because of litigation

noida Updated: Feb 20, 2018 23:16 IST
Vinod Rajput
Vinod Rajput
Hindustan Times
Amrapali builders,Amrapali Noida,Noida real estate
The state has sought details of all builders who have benefitted from interest waiver.(Sunil Ghosh/HT Photo)

State joint secretary Sitaram Yadav, through a letter, has sought a report from the Noida authority chief executive officer Alok Tandon on the issue of interest waivers given to builders since 2013.

The state government has sought a detailed report in the matter after the issue was raised by member of legislature council (MLC) Vijay Yadav in the Upper House in Lucknow. Addressing the House, Yadav had said a “huge scam took place in Noida and Greater Noida in the name of interest waiver to builders”.

Noida CEO Tandon said, “I am yet to receive the letter. Once I receive it, we will take appropriate action on it. If the government has asked for a report, we
will send the same as per the direction.”

Confirming that the Greater Noida authority has received the letter, an official said, “We will reply to the letter sent by the UP government.”

Since 2013, over a 100 builders in Noida and Greater Noida areas have sought waiver of interest charged stating that their projects were stuck due to litigation. While some have been granted relief by the the Noida and Greater Noida authorities, other cases are under consideration.

The state has sought details of all builders who have benefitted from interest waiver, the amount that has been waived and reason for receiving this benefit.

In June 2017, the Noida authority had waived the interest on 20 housing projects by different developers located around the Okhla bird sanctuary, a protected wildlife habitat. These 20 projects were affected because the National Green Tribunal had on August 14, 2013, ordered a ban on construction near the sanctuary, said officials.

The waiver is expected to be to the tune of ₹200 crore.

In January this year, the Greater Noida authority waived interest of 11 housing projects.

According to the letter, a copy of which is with Hindustan Times, the MLC said that in 2013 the Uttar Pradesh industrial and infrastructure development department had stated that Noida and Greater Noida CEOs should not be allowed to waive interest for builders without approval from the state government.

“There is a huge scam going on in Noida and Greater Noida in the name of interest waiver. The process of giving interest waiver to builders should be stopped immediately. No such waivers should be given till the state government takes a final decision on this issue (of whether to give this power to the authorities),” Yadav said.

The MLC demanded that the Noida CEO not be allowed to take a suo motu decision on interest waiver until a “final policy comes into place”.

Apart from this, the UP government has also sought a report on the action taken by the Noida and Greater Noida authorities to address the issues faced by homebuyers.

The MLC also demanded a detailed report, which has been sent to the state government by the Noida and the Greater Noida authority on the solutions to the homebuyers’ issues.

“What has this ministerial (urban minister Suresh Khanna, industries minister Satish Mahana and MoS Suresh Rana) committee done to solve buyers’ issues,” the MLC said in the Upper House.

First Published: Feb 20, 2018 23:16 IST