May 12, 2023: In a move that will facilitate the completion of hundreds of housing projects stalled due to lack of funds, the Noida and Greater Noida authorities are planning to introduce a co-developer policy. Through this, the projects will get funds to pay for the pending land costs to the authorities.
The policy was proposed to the Uttar Pradesh government by the Confederation of Real Estate Developers Association of India (Credai). It aims to benefit lakhs of homebuyers waiting to get their properties registered for years. Co-developers will be allowed to infuse funds into a pending project and complete it under the provisions of the policy instead of builders finalising co-developing agreements on their own.
The new developers will be responsible for clearing Rs 39,500 crore land dues that the builders owe the authorities. Most of these projects were launched a decade ago but have not been completed. Moreover, the authorities plan to provide incentives to these developers for clearing the dues.
According to Credai(NCR) secretary Gaurav Gupta, the builders’ body has urged the state government to introduce a land dues rationalisation policy. Only those projects with sales receivables higher than the project cost could be considered viable, he added. The authorities will be responsible for ensuring the timely provision of requisite approvals to the completion of projects on time.
Earlier this year, authorities began sealing and cancelling unsold inventory to recover the dues. However, this move did not work, as third-party rights have been created in most cases. Furthermore, the authorities had introduced a reschedulement policy earlier this year, wherein the developers could pay the dues in four instalments over a period of two years.
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
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