Seven realtors in Greater Noida to lose plots for failing to pay ₹200 crore

The state government has directed officials of the Greater Noida authority to cancel plot allotment to those builders who fail to clear land dues, or those who do not apply to exit from a realty project under the project settlement policy, which states that a builder can exit from a sick realty project or finish the project by introducing co-developer (s).

The Greater Noida authority issued final notices to seven realtors for non payment of dues amounting to Rs 200 crore, on Wednesday. Earlier, the authority cancelled the plot allotment of Value Infrabuild India Pvt Ltd for non payment of dues.

The state government has directed officials of the Greater Noida authority to cancel plot allotment to those builders who fail to clear land dues, or those who do not apply to exit from a realty project under the project settlement policy. (HT FILE)

“If these seven realtors do not submit satisfactory replies to our notices in the next 15 days, we will have to cancel the land allotment. We had issued them several notices in the past but they did not clear their land dues,” said Deepak Agarwal, chief executive officer of the Greater Noida authority.

The state government has directed officials of the Greater Noida authority to cancel plot allotment to those builders who fail to clear land dues, or those who do not apply to exit from a realty project under the project settlement policy, which states that a builder can exit from a sick realty project or finish the project by introducing co-developer (s).

“When these seven realtors did not clear land dues and did not even apply under PSP our team from the planning department went at the site to check whether these realtors had undertaken construction at the project sites or not. The team found seven realtors had not begun construction. Therefore, we are giving them the last opportunity to reply else face cancellation,” Agarwal said.

Officials said they do not guarantee refund to buyers who have made investments in any realty project. However, the authority will disburse the buyers some amount that they have already collected from the realtor towards the cost of land.

“We allot plots to a realtor, who then sells the flat to the buyers. Therefore, it is the builder who is liable to refund the money collected from the buyers. The strictest action that we can take is to cancel the allotment. We will distribute money among buyers from the amount the realtors have deposited with us,” Agarwal added.