August 21, 2023: The Noida Authority has decided to formulate a scheme to address the challenges faced due to delayed real estate projects, mentioned a Hindustan Times report. The authority aims to draft the scheme in one month and submit it to the Uttar Pradesh government for approval.
Officials said that the decision follows the recognition that the recommendations by a Central Government committee, led by former Neeti Ayog CEO Amitabh Kant, are not feasible solutions for the issues encountered within the real estate domain of Noida and Greater Noida.
The central committee mandated to devise a policy to tackle the challenges faced by the real estate sector across the country. In its report, the committee has suggested to the state government that the three authorities – Noida, Greater Noida and the Yamuna Expressway – should allow the registry of flats without asking the defaulter developers to clear land cost dues against a housing project.
Recently, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) recommended to the state government that the registry of flats in completed projects must be de-linked from the financial dues that builders owe to the Noida and Greater Noida authorities.
See also: Flat registration should be delinked from financial dues: UP Rera to govt
The committee has made multiple recommendations to the state government. The UP government will examine and make suitable decisions that will benefit nearly 1,67,000 homebuyers who have been waiting for their homes for almost a decade.
However, the Noida authority’s board has considered certain recommendations made by the committee as ‘impractical’, a conclusion reached during a meeting on August 13, 2023. The recommendations were deemed unfavourable due to their potential impact on the authority’s interests.
The media report quoted a Greater Noida Authority official who said the committee’s suggestions pertain to transferring the responsibility of issuing occupancy certificates for completed projects to the UP RERA. The committee also suggests disassociating property registry from financial obligations connected to a project. These proposals are counter to the authority’s interests. Thus, the authority has decided to draft its report that addresses the challenges while safeguarding its financial well-being.
Noida commences study of stalled projects
In view of the report by the central committee, led by Amitabh Kant, offering solutions for stalled reatly projects in the country, the Noida Authority has initiated a survey to collate details of each stalled project, according to a Hindustan Times report.
The survey, which will be completed in the next two weeks, aims to determine the number of such projects that have been delayed owing to the financial crisis. According to previous estimates, there are around 200 stalled projects, which collectively has about 1,67,000 units, which are delayed.
The Noida and the Greater Noida authorities together have to recover nearly Rs 50,000 crore dues from developers, including penal interests levied for defaulting on the payment.
Similarly, the Greater Noida Authority recently hired a consultant, Currie & Brown, to initiate a survey of the ongoing realty projects. According to the authority, there were 120 functional projects out of 193 and around 50 projects that were delayed.
See also: Greater Noida to cancel allotment if projects remain incomplete
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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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