The Noida Authority announced a substantial 21% reduction in dues for real estate developers, aiming to address the challenges faced by nearly 2.3 lakh housing units in Noida and Greater Noida. The recalculated dues are based on government guidelines issued last month, focusing on reviving stalled projects and facilitating property registrations. The reduction stems from the 24-month Covid zero period (March 2020-22), during which all interests and penalties have been waived.
At a meeting attended by developers from 52 real estate projects, the fresh estimate of dues was presented, considering proposals from the Amitabh Kant committee adopted by the UP government. The outstanding dues owed to the Noida Authority amount to approximately Rs 28,000 crore. With the Covid waiver, a realtor owing, for example, Rs 350 crore will now have to pay Rs 275 crore under the revised package.
Realtors willing to accept the recalculated dues and adhere to the state government’s rehabilitation proposal, which includes a time-bound payment plan, stand to benefit from a second tranche of a 20-month zero period waiver (2013-2015). This waiver pertains to the period when the National Green Tribunal imposed restrictions on construction within a 10km radius of the Okhla Bird Sanctuary. However, unlike the blanket waiver for the pandemic, relief in this case will be extended on a case-by-case basis following scrutiny of applications.
Developers will further discuss the offer in detail with the industrial development commissioner on Saturday. The Noida Authority board will grant final approval after realtors accept the recalculated dues and sign the offer. Subsequently, builders must pay 25% of the dues within the next 60 days and obtain necessary clearances for construction to resume in their projects. Homebuyers can proceed with property registrations, benefitting around 32,000 flats across the 57 housing projects discussed.
Many builders expressed satisfaction with the rebate, emphasizing its significance in a market where property prices are rising. Credai President in NCR, Manoj Gaur, urged the Noida Authority to address technical bottlenecks for issuing completion certificates promptly. Developers opting for the government’s rehabilitation package can also seek benefits such as a three-year project completion extension, partial surrender of unused land, collaboration with co-developers, and acquisition of unused floor area ratio (FAR).