The decision will impact around 190 group housing projects across Noida and Greater Noida where developers are yet to clear dues amounting to around Rs 32,000 crore while over one lakh flats are yet to be delivered to buyers, according to official estimates.
Noida: The boards of Noida Authority and Greater Noida Authority on Tuesday adopted the Uttar Pradesh government‘s order to implement recommendations of the Amitabh Kant Committee on real estate projects, in a move aimed at helping buyers get homes soon and builders complete stuck projects.
Read More: DLF unveils shop-cum-office plots in Gurugram
The decision will impact around 190 group housing projects across Noida and Greater Noida where developers are yet to clear dues amounting to around Rs 32,000 crore while over one lakh flats are yet to be delivered to buyers, according to official estimates.
With this, builders will be able to avail the benefit of ‘zero period’ for completion of projects, time period extension for deposit of dues, mortgage permission, purchase of prevailing FAR, and extension of time for completion of project, while flat buyers will get the benefit of registration in three months, additional and many other benefits, according to a statement.
The decision was taken during the 231st board meeting of the Noida Authority and the 133rd board meeting of the Greater Noida Industrial Development Authority (GNIDA), both chaired by its chairman and UP’s Infrastructure and Industrial Development Commissioner Manoj Kumar Singh.
Read More: Real estate sector’s growth prospects in 2024 look promising
Greater Noida Authority CEO NG Ravi Kumar and Noida Authority CEO Lokesh M were present as board members.
“In the 133rd board meeting, an approval has been given to adopt the government order issued on implementing the recommendations of the Amitabh Kant Committee,” GNIDA said in the statement.
However, builders will not be able to get benefits if the conditions are violated, it noted.
The recommendations of the committee will be applicable to the group housing projects and if there is a commercial part in group housing, then it will be applicable in that also while township development projects will also be within its scope, GNIDA said.
But, if the group housing project is in NCLT or court, then it can avail the benefit of this package only when the case is withdrawn. Also, these recommendations will not be applied to group housing projects of the Sports City Project or those included in the Recreation Entertainment Park Scheme, according to the statement.
Apart from this, these recommendations will not be valid in commercial, institutional and industrial projects, the GNIDA said.
Recently, orders were issued by the Uttar Pradesh government for the adoption of the recommendations of a committee on stalled real estate projects headed by former NITI Aayog CEO Amitabh Kant.
To implement these recommendations, proposals were made in the board meeting of Greater Noida Authority on Tuesday.
Infrastructure and Industrial Development Commissioner (IIDC) Manoj Kumar Singh said, “This initiative of the government will provide great relief to the buyers, and OC and CC of all the constructed flats will also be issued. Those dwelling in their homes will soon get registries on their names and have ownership rights of their property.” The GNIDA said several reliefs have been announced for the completion of the incomplete projects.
Builders will be given the benefit of the ‘zero period’ from April 1, 2020, to March 31, 2022 (peak Covid pandemic period).
After taking advantage of the ‘zero period’, 25 per cent of the outstanding amount will have to be deposited within 60 days. The remaining 75 per cent money will have to be deposited with simple interest in three years, it said.
Now a co-developer will also be able to get permission to complete the project. Both will be responsible for paying the outstanding amount of the authority. Partial surrender of unused land of the project will be allowed.
The authorities will adjust the amount already paid for the surrendered land with the dues of the builder, it added.
