The Noida government delivers notice to developers with outstanding projects at the NCLT

By Bricksnwall | 2024-06-22

The authority has given realtors 15 days to either get out of NCLT proceedings or they will not be able to employ elements of the state government policy, which offers interest waivers.

NOIDA: The Noida authority said on Friday that it has notified multiple realtors whose realty projects are pending in the National Company Law Tribunal (NCLT) that they can use the rebates on interest on their financial dues if they are able to withdraw their cases from trial before the NCLT.

The authority has given them 15 days to either resolve their NCLT cases or lose access to parts of the state government policy that provide interest waivers for two years during the COVID-19 period when construction activity was disrupted.

 "We are sending letters to all realtors encouraging them to take advantage of the state government's programme and rectify concerns in order to gain register approval. If NCLT cases are settled, we will extend the benefits of this policy to realtors. "We have given 15 days to those who have cases pending in NCLT," said Lokesh M, the Noida authority's CEO.

Furthermore, the Uttar Pradesh government has provided them the possibility to get reimbursements for the time when work was halted owing to previous legal challenges. To be sure, there are at least 30 projects owned by various realtors that have defaulted and gone bankrupt, and they are facing NCLT cases.

According to the standards of the state government policy, which was released on December 21, 2023, if a corporation is facing trial in NCLT, it cannot benefit from this policy, officials stated.

"We are sending letters to all realtors, requesting that they take advantage of state government policy and fix concerns in order to acquire register approval. If NCLT cases are settled, we will extend this policy's benefits to realtors. "We have given those who have cases pending in NCLT 15 days," said Lokesh M, the Noida authority's CEO.

"The realtors purchased land for real estate projects after making a 19% down payment and paying the remaining amount in installments. And if they defaulted, they were required to pay penal interest, which increased the project's dues. When realtors failed to pay dues to the government or others, such as vendors, contractors, or investors, they filed writs in NCLT, bringing the project into the corporate bankruptcy resolution procedure," the official explained.

The authority believes that if the realtor can pay investors, vendors, banks, or buyers who require their money back, these matters can be handled, and the realtor can take advantage of the state policy that provides waivers and other benefits.

The realtor can pay 25% of the dues upfront after receiving rebates, and the remaining 75% can be paid over one to three years. Also, the realtor becomes eligible to gain authorization for registry in favour of the buyers, thus addressing the registry concerns that have been pending for many years.

Dinesh Gupta, secretary, Confederation of Real Estate Developers Association of India (CREDAI), said they appreciate the Noida authority's approach since it can benefit both buyers who are stuck and realtors who are also suffering.

"If a realtor is able to resolve NCLT issues, he can benefit from the state policy. "We will discuss this and pursue those who can benefit from this policy," he said.

 Source: HindustanTimes