Developers of approximately 30 commercial projects have accumulated dues totaling over Rs 8,000 crore owed to the Noida Authority. While some were consistent in clearing their dues until 2020, the flow of payments to the Authority has significantly dwindled in the past three years, according to officials.
On Thursday, Noida Authority CEO Lokesh M held a meeting with builders of commercial projects to address the outstanding dues. Around eight developers attended the meeting and raised concerns about issues such as time extensions and zero periods.
Officials disclosed that five of the 30 builders collectively owe around Rs 6,000 crore, while the remaining projects have outstanding amounts averaging around Rs 100 crore each.
During the meeting, it was decided that developers would be summoned to the Authority offices in groups starting this week. This arrangement aims to allow developers to articulate their specific issues to the concerned officials, facilitating the exploration of amicable solutions.
“The Authority will listen to them about their problems and try to solve them. Subsequently, they were asked to pay their dues,” stated an official.
Authorities revealed that a proposal for the resolution of commercial properties had been proposed months ago, prompting the commercial department to prepare a report. The report indicated negligence on the part of the commercial department, as it had failed to establish escrow accounts for the developers, and no focused action had been taken earlier.
Nevertheless, this initiative excludes the Spots City projects, categorized under commercial properties. Officials affirmed that these projects would be addressed sequentially in the coming months.
Under the Sports City scheme, over 300 hectares of land across four different locations were allocated for development, with developers incentivized through the inclusion of residential and commercial land use. However, many developers failed to adhere to the stipulated norms, leaving over 30,000 homebuyers stranded in these projects.
Developers currently owe Rs 8,200 crore to the Authority, prompting ongoing efforts to recover dues from developers of 57 defaulter residential projects and expedite registry of flats over the past three months.