Under pressure, Noida authority allows builders to clear land dues by March 15, deliver flats
Under the scheme, a builder can deposit 10% (if the land dues is Rs 500 crore or more) of the total land dues and get occupancy certificate (OC) from the Noida authority.Updated: Jan 29, 2018 22:58 IST
The Noida authority chief executive officer (CEO) Alok Tandon on Monday decided to extend the last date of the rescheduling scheme from November 30 to March 15, 2018.
The scheme meant for the builders to clear their dues and deliver flats to homebuyers without further delay started on October 3 last year. The authority was forced to extend the date of this scheme because it wants builders to clear land dues and deliver stuck housing projects.
Under the scheme, a builder can deposit 10% (if the land dues is Rs 500 crore or more) of the total land dues and get occupancy certificate (OC) from the Noida authority.
After getting the OC, buyers can legally shift into flats and get the registry executed, provided the builder pays the remaining land dues per flat at the time of execution of flat registry. If the land dues are less than Rs 500 crore, the builder will have to pay 15% of the total land dues to be eligible for OC, which is mandatory before a building is ready for occupancy.
“The response from builders has not been that encouraging. Since the launch of the rescehduling scheme on October 3, only eight builders have come forward and deposited nearly Rs 100 crore. Therefore, the Noida authority has extended the date till March 11, 2018, so that builders can finish stuck projects and deliver flats to buyers. We hope that builders will use this scheme that started on October 3, 2017, and resolve the problems of homebuyers,” said Manmohan Mishra, financial controller, Noida authority.
Chief minister Yogi Adityanath has promised to deliver 80,000 flats in stuck housing projects in Noida and Greater Noida by April 2018.
The move has put pressure on the two authorities to ensure flats are ready by then. As a result, the two authorities are coming up with new schemes. However, builders are failing to deliver flats despite the handholding by the authorities.
In an order the CEO, Noida authority, has mentioned that if it wants to achieve 40,000 flats delivery (the government claims it has already delivered 40,000 by December 2017) by April 2018, the authority will have to extend the date of rescheduling scheme till March 15, 2018.
Noida is struggling to recover around Rs 11,000 crore from 94 builders, who have failed to deliver around 78,000 flats to buyers, officials said.
Builders hope that the extension of the scheme will help them.
“This scheme should be made open ended so that a builder whenever can make use of it and deliver flats to buyers. We hope that this scheme will work out and help in delivering flats that are stuck,” said Amit Modi, vice-president, Confederation of Real Estate Developers Association of India, a realtors’ lobbying body and director of ABA Corp.
First Published: Jan 29, 2018 22:58 IST