NOIDA: The Yamuna Expressway Industrial Development Authority (YEIDA) will consider requests by developers of five stalled projects to avail state govt’s rehabilitation policy, the deadline for which lapsed last year.
If YEIDA agrees, officials said, the developers in return will file applications to withdraw cases pending in the National Company Law Tribunal (NCLT) and in other courts.
“Six builder projects have availed relief under the govt’s policy. Five projects remain stuck in legal disputes, affecting thousands of homebuyers,” YEIDA chief executive officer Arun Vir Singh said on Thursday.
Authority officials said the final decision on extending the policy to these developers will be made at a board meeting that is likely to be held soon.
“The proposal holds merit but resolving the issue will be complex. The final decision will be taken in the upcoming board meeting, keeping the plight of thousands of homebuyers in mind,” an official said.
Among the issues to be considered at the board meeting will be the complication in withdrawing cases with NCLT, a process that involves more than just filing an application.
Before the tribunal can approve such a request, the developer must fulfill multiple financial and legal obligations, primarily settling claims with petitioners, clearing dues with development authorities, and presenting a viable plan for project completion. The primary hurdle is resolving disputes with the petitioners who initiated insolvency proceedings. In most cases, petitioners are homebuyers or financial creditors such as banks. Even after fulfilling all obligations, the final decision to allow withdrawal rests with the tribunal.
Together, the developers of the five projects owe Rs 2,700 crore to YEIDA.
These include an SDS Infracon project in Sector 26A (dues Rs 648 crore), Supertech Ltd project in Sector 17A (Rs 466 crore), Supertech Township project in Sector 22D (Rs 651 crore), Ajnara India project in Sector 22A (Rs 55 crore), and Orris Developers project in Sector 22D (Rs 824 crore).
Around 1,400 homebuyers invested in SDS Infracon’s integrated NRI Township project in Sector 26A, spread over 125 acres.
Supertech Township was allotted 100 acres in Sector 22D in 2011 to develop the Golf Country Township, where around 3,200 buyers have invested. Additionally, Supertech Ltd’s Upcountry project in Sector 17A, allotted 100 acres in 2009, has around 3,500-4,000 units, including flats, villas and plots, which have been sold
In Dec last year, NCLAT had ordered the National Buildings Construction Corporation (NBCC) to take over the 16 incomplete projects of Supertech Ltd.
Orris Developers was allotted 100 acres in 2011 for a township project with 684 plots and 620 flats. Ajnara India was allotted 25 acres in Sector 22A in June 2011 for its Panorama project, which was supposed to deliver 3,266 flats.
Introduced in Dec 2023, UP’s rehabilitation package gave several concessions to developers, including a two-year waiver from paying interests and penalties imposed during the pandemic, if the builders deposited 25% of their revised dues within 60 days of agreeing to the deal. Projects under insolvency could also avail the policy on withdrawal of cases.
Builders could opt for the package till Sept-Oct, said YEIDA CEO Singh.
On Thursday, Singh said five builders that availed the package have deposited the 25% amount, and ATS Realty has sought an extension to do so till Feb 28. “Till now, over 2,500 property registrations have been executed under the policy. Five pending projects have requested YEIDA to extend the ‘zero period’ to opt for the package,” the CEO said.
