Thursday, July 25, 2024

Seven Developers in Noida Commit to Settle 25% Dues as Part of New Policy to Revitalize Stalled Projects

In a significant move towards revitalizing stalled real estate projects, seven developers in Noida have opted to pay 25% of their total dues to the authority. This decision facilitates the registry of flats for over 1,000 homebuyers and is integral to a one-time settlement scheme endorsed by the authority.

The initiative follows the approval of recommendations made by a committee chaired by former NITI Aayog chairman and G20 Sherpa, Amitabh Kant. It is estimated that property developers collectively owe approximately Rs 40,000 crore to Noida, Greater Noida, and Yamuna Expressway authorities. These dues encompass premiums, interest, and penal interest related to allotted plots, where realty projects are at various stages of execution.

As per the proposal, developers participating in the policy are barred from charging any additional amounts from buyers. This measure ensures that the financial relief provided by the government is directly passed on to homebuyers. The calculation of builder dues will be reassessed by an independent chartered accountant or a third party. Additionally, no charges will be imposed for granting a three-year extension to the builder.

Upon agreement to the relief package, developers are required to submit 25% of their dues. Subsequently, the authority grants permission for the property to be mortgaged, enabling builders to raise funds for project completion.

It is essential to note that the relief package is not applicable to projects under the Sports City scheme, as well as commercial, institutional, and industrial projects.

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