Seven developers in Noida have agreed to pay 25% of the total dues to the authority paving pay for the registry of flat for over 1,000 homebuyers.
This is part of a one-time settlement scheme to revive stalled real estate projects. This follows the authority’s approval of the recommendations of a committee chaired by former NITI Aayog chairman and G20 Sherpa Amitabh Kant.
Property developers are estimated to owe as much as Rs 40,000 crore to the Noida, Greater Noida, and Yamuna Expressway authorities, including premiums, interest, and penal interest against allotted plots on which realty projects are currently in different stages of execution.
According to the proposal, builders availing of the policy won’t be allowed to charge any amount from the buyers so that the financial benefit provided by the government is passed on to the homebuyers.
An independent chartered accountant or a third party will recalculate the builder dues. In addition, no charges will be levied for granting a three-year extension to the builder.
Once a developer agrees to the relief package, they have to submit 25% of the dues, and the authority will give permission to mortgage the property so that the builder can raise the funds to complete the project.
The authority has stated that the relief package will not be applicable to projects that are part of the Sports City scheme, and commercial, institutional, and industrial projects.
