NOIDA: Nearly 60% of stalled projects under the three industrial authorities have sought relief under UP govt’s rehabilitation package, unlocking registration of over 63,000 flats within the next year.
At a review meeting with chief minister Yogi Adityanath on Aug 24, the three authorities reported that 93 out of 161 projects have already availed of the package, which was announced by the govt in Dec last year. Cumulatively, developers of these 93 projects have deposited Rs 953 crore and the govt is expected to mop up an another Rs 2,250 crore over the next year.
The CM has directed the authorities to enforce punitive measures – cancelling land allotments, sealing vacant or unallocated flats and reclaiming unconstructed or vacant areas – outlined in the rehabilitation package against non-compliant developers.
In Noida, 57 projects had defaulted on land dues. Of these, 22 have accepted the rehabilitation package, which offers a two-year zero-period relief – from April 2020 to March 2022 – exempting developers from paying interest and penalties for the period when work was stalled due to the Covid-related lockdown.
The Noida Authority has received Rs 304.35 crore from these projects so far and expects to collect another Rs 904 crore over the coming years. It will allow registration of 7,763 flats.
Sixty-six of the 98 defaulter projects in Greater Noida have opted for the rehabilitation package and already paid up Rs 429 crore dues cumulatively to the Authority. GNIDA is to get an additional Rs 965 crore and execute registries of 48,776 flats in these residential projects.
In the YEIDA region, five out of six defaulter projects have deposited Rs 172 crore to date, with an additional Rs 375 crore expected. This will lead to the registration of 6,879 flats.
So far, over 8,000 flat registrations have been completed across the three authorities.
The Noida Authority has decided to offer additional relief on a case-by-case basis to projects which were halted due to an NGT order that banned construction within 10 km of the Okhla Bird Sanctuary.
This relief is provided to builders who have accepted the govt’s package by paying the initial 25% of their recalculated dues.
Meanwhile, the real estate body National Real Estate Development Council (NAREDCO) has written to the Ministry of Housing and Urban Affairs to issue directions to the state govt to extend additional time for developers to pay their dues and complete construction. NAREDCO has urged the UP govt be directed to reschedule land dues over a period of three to five years, deducting the zero-period entitlement, and eliminating the requirement for a 25% upfront payment, citing the severe liquidity crisis in the real estate sector.
The organisation proposed that land dues be collected through an escrow account funded by receipts from sold inventory and new bookings.
NAREDCO’s UP chapter president RK Arora said govt should also allow immediate registration and execution of sub-leases for towers that have received occupancy certificates (OC). He suggested that sub-leases be approved proportionally to payments collected through the escrow mechanism and that essential approvals, such as registries, plan approvals, and OCs, be granted upon the restoration of escrow arrangements.
Additionally, the development council requested a three to five-year extension for project completion without penalties and urged the state’s rehabilitation policy to cover all types of projects, including residential, commercial, sports city, IT/ITES, and industrial. It said challenges such as the NGT ban, land disputes, and the pandemic affected all sectors, not just group housing.
