NOIDA: Realtors who have applied under the state govt’s reschedulement policy for legacy dues and made the upfront 25% down payment will now be considered for a second waiver that the policy conditionally provided for, which could bring their dues down further.
The first waiver — of all penalties and interests for the two years of the Covid pandemic — has already been extended to developers who applied for the scheme, cutting a chunk from ballooning dues that for several realtors run into thousands of crores.
The relief they may now get is for another two-year period when NGT had stopped construction in a 10km radius while the process to demarcate the eco-sensitive zone of Okhla Bird Sanctuary was on.
Of the 27 of 57 builders in Noida who had agreed to the terms, about 10-11 are eligible for this additional relief – applicable for the period from Aug 14, 2013 to Aug 19, 2015.
Noida Authority CEO Lokesh M told TOI that an assessment in this regard is ongoing, and the developers’ applications will be handled individually. This is in line with UP govt’s rehabilitation policy announced last Dec that was framed taking into account Amitabh Kant committee’s recommendations to revive stalled projects.
The policy clarifies that the zero-period benefit will be granted on a case-to-case basis as per Noida Authority’s policies, keeping in view other circumstances of the projects. Notably, the Authority in the past had offered a zero-period waiver to several developers due to NGT orders, but that was for a shorter period. It is likely that the zero-period duration given in the past will be deducted from the two-year period.
The Confederation of Real Estate Developers’ Associations of India (Credai) expressed optimism about the move, saying realtors had been demanding this for long.
“This will help developers clear their dues quickly. In turn, it is expected to accelerate the registration process for homebuyers, providing much-needed relief for stalled projects,” said Dinesh Gupta, the Credai secretary in western UP.
Gupta said the Authority should also look into issues concerning time extension charges for delayed projects, pointing out that constructions were halted for various reasons beyond the control of developers, such as farmers protests and environmental restrictions during winter.
Manoj Gaur, the Credai president in NCR, said, “Noida Authority has acknowledged the hurdles developers face while ensuring quality and timelines of projects. But, developers have also been demanding zero-period benefits for other GRAP restrictions that are imposed every winter. Stopping construction then not only increases the cost but also the time required for a project. It takes time to mobilise the manpower back as they travel back to their hometowns.”
