NOIDA: GNIDA is likely to extend the penalty waiver for homebuyers unable to register their flats due to developers’ outstanding dues, for another six months, in its upcoming board meeting.
Introduced in July 2024 for a six-month period, the waiver has already benefited over 6,500 homebuyers, each receiving a waiver of penalties ranging from Rs 2 lakh to Rs 2.5 lakh.
According to officials, the initiative encouraged more property registrations and helped reduce legal disputes. “Since the implementation of the govt’s policy for stalled projects in Dec 2023, over 11,500 registries were executed, and out of these, 6,500 homebuyers availed the penalty waiver benefits,” said Saumya Srivastava, OSD at GNIDA.
The Noida Extension Flat Owners’ Welfare Association (NEFOWA) and other homebuyer groups have urged GNIDA to extend the scheme, citing financial constraints faced by many buyers. “Many homebuyers are eager to complete their registries but are struggling to arrange funds. They should be given more time to deposit the registry amount, and we are hopeful that the Authority will consider our request,” said NEFOWA president Abhishek Kumar.
The relief was initially introduced to assist nearly 40,000 homebuyers across numerous stalled projects. Despite receiving occupancy certificates many buyers were unable to execute their registries due to their developers’ failure to clear dues, leaving them without legal ownership of their flats.
Previously, in 2018, GNIDA granted a similar waiver, allowing buyers to register their flats without penalties. However, those whose developers had outstanding dues were still barred from completing the process. Once the relief window closed, these buyers faced daily penalties—Rs 50 for flats under 100 sqm and Rs 100 for larger homes—resulting in accumulated fines of Rs 2 lakh to Rs 2.5 lakh per buyer.
The issue gained further attention in Dec 2023 when the Uttar Pradesh govt introduced a rehabilitation policy for stalled projects. Under this policy, 78 builders in Greater Noida availed benefits under a “zero-period” waiver on interest and penalties accrued during COVID, provided they paid 25% of their recalculated dues upfront.
In early 2024, homebuyer groups petitioned the authority to waive these fines. Following discussions at a board meeting in June 2024, a six-month penalty waiver was approved, which was in effect from July 22, 2024, until Jan 31, 2025.
With thousands of buyers benefiting from the relief but many still unable to gather the necessary funds, the upcoming board meeting will determine whether the waiver will be extended.
