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Wednesday, July 24, 2024

Greater Noida Authority Unlocks Registry for 6,500 Stuck Apartments with Rehabilitation Package

The Greater Noida Industrial Development Authority (GNIDA) has taken a significant step toward facilitating the registration of more than 6,500 flats in various stalled projects. Sources indicate that nearly 30 real estate developers have shown interest in settling their outstanding dues under the Uttar Pradesh government’s rehabilitation package for stuck projects.

As part of the rehabilitation package, developers will benefit from a zero period, during which penalties and interest related to delays will be waived. Dues will be recalculated, rescheduled, and, most importantly, developers will be allowed to complete registries promptly. The co-developers’ policy will also be implemented to expedite the resolution of these housing projects.

During the zero period, which spans from April 1, 2020, to March 31, 2022, developers can avail themselves of waivers on penal interest, accounting for disruptions caused by both the COVID-19 pandemic and construction halts due to court orders.

To initiate the registry process, developers must pay an initial 25 percent of their total dues, deducting penal interests. It is estimated that the GNIDA could receive around Rs 350 crore from the developers of 30 stalled projects through this initiative. Once the initial payment is made, the authority will grant the necessary permissions, and the registration process for the flats is expected to be completed within one or two months.

Officials suggest that developers of nearly 30 projects have agreed to the 25 percent payment condition, urging others to take advantage of the package to protect homebuyers from further inconvenience.

It’s noteworthy that under the rehabilitation policy, the authority has the power to cancel allotments of defaulting builders who do not avail themselves of the package, thereby taking over incomplete projects and blacklisting the defaulters for five years in the Noida, Greater Noida, and Yamuna Expressway Authority regions.

The total outstanding dues from real estate developers in Gautam Budh Nagar are approximately Rs 44,700 crore, with Rs 26,000 crore owed to the Noida Authority, Rs 14,000 crore to the Greater Noida Authority, and Rs 4,700 crore to the Yamuna Expressway Industrial Development Authority (YEIDA).

In an effort to address the issue of stuck housing projects, the Union government had formed a panel in March 2023, chaired by former NITI Aayog CEO Amitabh Kant. The committee’s recommendations were approved by the Uttar Pradesh government on December 19, 2023, leading to the rollout of a rehabilitation package by the Noida and Greater Noida Authorities on December 26. This package aims to provide relief to developers of delayed housing projects in their respective jurisdictions.

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