NCR real estate news: Noida authority begins attaching unsold flats of defaulting realtors

Noida Authority has given a week’s ultimatum to the developers of 12 similar projects to deposit 25% of their dues or face legal action

In an attempt to recover dues and deliver justice to thousands of homebuyers, who have been suffering for the past many years, the Noida Authority has decided to seal, attach and auction unsold flats of defaulting builders and took possession of vacant unused land of three projects -- the Grand Omaxe (Omaxe Buildhome) in Sector 93B, Antriksh Golf View (Colourful Estate) in Sector 78, and Matrott (Skytech Constructions) in Sector 76.

In an attempt to recover dues and deliver justice to thousands of homebuyers, who have been suffering for the past many years, the Noida Authority has decided to seal, attach and auction unsold flats of defaulter builders. (Representational photo) (Sunil Ghosh/HT Photo)

The move comes after promoters failed to deposit 25% of the recalculated dues under the state’s policy meant for stalled housing projects that came on December 21, 2023.

The authority has given a week’s ultimatum to the developers of 12 similar projects to deposit 25% of their dues or face legal action in the form of complaints filed with the economic offences wing (EOW).

The decision to attach and seal the unsold inventory in housing projects came on September 4 during a meeting chaired by Noida Authority’s chief executive officer Lokesh M, who directed the group housing department to launch a crackdown against defaulter realtors.

“We have directed the group housing and finance departments to attach and take back unused plots from the defaulter realtors in order to realize our revenue and also pave the way for addressing homebuyers’ grievances. Our teams will check the inventory that has got no third party rights on it, and then the attachment and seizure will take place,” said Lokesh M.

Move comes after some developers failed to pay the required amount to Noida Authority

The developers of these projects have failed to pay the required amount, officials said, adding that some of them have paid only a fraction of the necessary deposit.

The projects in question are Aims Max Gardenia, Omaxe Buildhome, Colourful Estates, Prateek Buildtech, Prateek Realtors, Sunworld Residency, Sunshine Infrawell, Antriksh Developers & Promoters, Perfect Propbuild, Mahagun Real Estates, Imperial Housing Ventures, Assotech Ltd, Assotech Contracts, Skytech Constructions and AVP Buildtech.

Of the 56 builder projects covered by the government order issued in December 2023, which addresses legacy stalled real estate projects, 22 builders have deposited 25% of the total assessed dues, amounting to ₹275.72 crore, after availing of concessions.

The dues for six builders have been nullified after recalculation, said officials.

A total of 2,558 flat buyers across these 28 projects have been granted permission for registry, with 1,298 registrations completed and 1,260 pending.

On Tuesday, the authority announced that it will write to the EOW against non-compliant builders who have failed to pay necessary dues. There are 28 projects whose developers have not taken advantage of the rehabilitation package, and owe the authority nearly ₹6,900 crore. Over 12,700 flats remain unregistered in these projects, said officials.

“If the EOW probe will establish proof that realtors diverted funds or misused it, then the enforcement directorate will probe the matter. The realtors who are willingly defaulting will face action,” said Vandana Tripathi, additional CEO, Noida authority.

Credai urges members to clear dues

The Confederation of Real Estate Developers Association of India (CREDAI, a builder’s group, has also asked realtors to clear the dues.

“The CREDAI has urged the developers to obey the authority directive because it will benefit not only them, but also homebuyers, who have already suffered enough,” said Dinesh Gupta, secretary, CREDAI, western UP chapter.