NOIDA: A month and half after its rollout, UP govt’s rehabilitation package for real estate developers has drawn a response that can at best be called lukewarm.
So far, of the 57 realtors who were in the pool for the package – this doesn’t factor in another 30-odd whose projects are before courts – just 13 have handed over consent letters to Noida Authority, agreeing to the terms.
Ten companies with maximum dues, including Aims Max Gardenia (Rs 1,600 crore), Omaxe (Rs 490 crore), Pan Realtors (Rs 380 crore), have neither attended any meeting of the Noida meetings nor applied for a reschedulement of dues. A few more are in the pipeline”, sources said, but that would still barely make a dent.
The rehab package accommodated several of the Amitabh Kant committee’s recommendations, to revive 2.4 lakh stalled projects, the bulk of which is in Noida and Greater Noida. The package includes a two-year ‘zero period’ waiver of penalties and interests charged during the Covid pandemic, which has substantially brought down dues of developers. But it also includes a time-bound repayment schedule for the recalculated dues.
Noida Authority will soon issue “final” letters to developers, asking for their decision. “The process cannot be endless. If developers intend to benefit from rebates, they should promptly come forward and start clearing their dues. Through the letter, we will ask developers to inform us about their decision within a week. We cannot keep waiting for their replies after holding so many meetings in January,” Noida CEO Lokesh M told TOI on Friday.
If all 57 developers accept the terms of govt’s package, the eventual beneficiaries will be 32,000 homebuyers who are either waiting for registry or possession. For Noida, it will mean a repayment pipeline of Rs 8,000 crore, the collective dues of these 57 developers. So far, the doors have opened for registry of around 1,600 flats.
Lokesh M said there would be no recalculation of dues with the zero-period waiver for developers who don’t apply for the package. “They will be dealt with according to govt rules and regulations. They will have to pay the entire dues. Noida Authority will take action like issuing recovery certificates and sealing their properties. No occupancy certificate (OC) or completion certificate (CC) will be issued to them,” he added.
Govt had on Dec 21 issued guidelines to revive stalled projects, incorporating several of the Kant panel’s suggestions. Noida Authority recalculated the dues after deducting interest and penal interest from April 1, 2020 to March 31, 2022. It assured most realtors of a 21% rebate at a meeting held with their representatives on Jan 5.
A day later, UP industrial development commissioner Manoj Kumar Singh, who is also Noida Authority chairman, held one-on-one meetings with realtors and urged them to give their consent. On Jan 23, seven developers – IITL Nimbus (Hyde Park, Sector 78), Capital Infraprojects (The Golden Palm, Sector 168), Divine India Infrastructure (Divine Meadows, Sector 108), HR Oracle (Elite Homz, Sector 77), Aims RG Angel (Eco City, Sector 75), Sunshine Infrawel (Helios, Sector 78), and Gulshan Homes (Ikebana, Sector 143) – came forward to apply for the package, agreeing to deposit 25% of their recalculated dues to Noida Authority within 60 days. Since then, another six have applied.
Developers appear to be unhappy about the recalculation of dues. The contention is that though the Kant panel had recommended two zero periods, the other being a 20-month waiver between 2013 and 2015 when the National Green Tribunal halted construction for demarcation of an eco-sensitive zone around the Okhla Bird Sanctuary, UP govt had considered one for a blanket waiver and the other for a conditional waiver.
Credai (western UP) secretary Dinesh Gupta told TOI, “There are 17 developers who might get the benefit of the (NGT) zero period. Some claim if that is considered, all their arrears will go away. However, Noida is adamant about a 25% upfront payment and will consider the NGT zero period only on a case-by-case basis. It is a huge dampener.”
