Shree Radha Sky Garden in Greater Noida will be the first project approved for revival under the recently approved policy of Uttar Pradesh government for stressed projects, helping over 2,000 homebuyers to get the flat.
The Greater Noida authority has issued an order in this regard, allowing Hawelia Group, a real estate developer, to take control of a 22-acre partially completed undertaking known as Shree Radha Sky Garden in Greater Noida.
Hawelia group has taken over as a co-developer, where it will assume the responsibility of finalising the construction of more than 2,000 flats.
“We have in principal approval form SWAMIH for the funding of this project and we will start paying the dues of local authority as well. Our only MOU for revival of legacy stalled projects executed during the UP Global Investment Summit 2023 and also our representation to the Central Govt committee for Co—Development policy has been approved by Uttar Pradesh govt, which will help homebuyers in the region,” said Nikhil Hawelia, Managing Director, Hawelia Group.
Furthermore, the developer is committed to settling outstanding dues of Rs 175 crore with the Greater Noida authority, along with approximately Rs 63 crore in construction finance and Rs 20 crore owed to vendors, among other financial obligations.
It is projected that an additional investment of Rs 450 crore will be required from the company to successfully conclude the project.
“The decision will act as a game changer and will have long lasting impact for lakhs of home buyers who have been waiting for years to fulfill their dream of owning a home. It shall also be a benchmark for the government as the long pending dues of land payments will be recovered and huge revenue from the stamp duty collection are expected,” Hawellia said.
According to the Confederation of Real Estate Developers’ Associations of India (CREDAI) 190,000 units worth Rs 1 lakh crore are stuck in Noida, Greater Noida, and Ghaziabad.
In Greater Noida alone, at least 36 real estate projects are facing insolvency proceedings.
Within the Greater Noida undertaking, the original developer has successfully delivered approximately 2.5 million square feet. The newly appointed builder will undertake the delivery of an additional one million square feet, which had been initiated but not finalised by the previous developer. Additionally, there is potential for further development encompassing an area of around 2 million square feet.
Hawelia Group is also settling RERA cases filed by the buyers and even buying back the properties.
It is estimated that Rs 40,000 crore is due to the Noida, Greater Noida, and Yamuna Expressway authorities, including premium, interest, and penal interest against allotted plots on which real estate projects are in different stages of execution.
Under the co-development policy, the new developer could raise debt for the financial closure of such projects based on its net worth and credit ratings, as the promoters, which are already in default, do not have the required credit ratings to raise debt for the completion of such stalled projects.
UP cabinet on Tuesday gave approval to recommendations of a committee chaired by former NITI Aayog chairman and India’s G20 Sherpa Amitabh Kant, which is expected to infuse new life into more than 200,000 stalled flats in Noida, Greater Noida, and the Yamuna Expressway region.
