Twelve home developments in Noida are eligible for waivers during the time that the NGT prohibition halted construction

By Bricksnwall | 2025-01-08

A second zero period of two years will be available to the 12 group housing complexes that took advantage of the UP government's rehabilitation package scheme.

According to the Noida authorities on Tuesday, 12 out of 57 housing projects were legally eligible for interest remission on land cost dues during the time that building was halted because of a National Green Tribunal prohibition.

The Noida authority granted interest waivers to housing projects whose construction was interrupted during the COVID-19 pandemic and during the time when the National Green Tribunal ordered the construction to stop, in accordance with an Uttar Pradesh government policy announced in December 2023. According to officials, the guideline stipulated that the promoter of a housing project seeking Covid-19 interest exemptions must settle any outstanding debts before they can apply for NGT waivers.

Twelve housing project promoters in all have applied for NGT waivers. We shall now proceed with evaluating their claim. We must confirm whether the NGT orders prohibiting construction had an impact on the construction work in these 12 projects. According to the guideline, interest exemptions would only be granted to qualified projects, stated Lokesh M, CEO of the Noida authority.

According to the state government's policy regarding blocked legacy housing projects, there is a chance to request waivers for the COVID-19 period, pay 25% of the entire amount owing up front, and then spread out the remaining amount over one to three years.

According to the authority CEO, the 12 group housing complexes in Noida that paid 25% of their dues and benefited from the state government's rehabilitation package policy will be eligible for a second zero period of two years.

The NGT ruling, which prohibited development within a 10-kilometer radius of the Okhla Bird Sanctuary from August 14, 2013, to August 19, 2015, had an impact on these projects.

The eligibility of each project will be assessed separately, taking into account the construction progress at the time and whether or not applications for occupancy certificates had been filed. Only the 12 builders who deposited 25% of their outstanding balances will be eligible for this incentive, according to Lokesh M.

Before recalculating dues, the authority will additionally take into account the length of any previous zero period benefits awarded to these projects.

The government's blocked project policy identified 57 defaulting projects based on suggestions made by former NITI Aayog CEO Amitabh Kant. Of them, 29 builders paid ₹276 crore, or 25% of their outstanding balance, and other builders made partial payments, for a total collection of ₹378.73 crore.

During the COVID-19 epidemic, these builders were previously given a zero period from April 1, 2020, to March 31, 2022, which reduced the total amount owed by ₹1,866 crore.

The finance department will now examine these 12 qualified builders and recalculate their unpaid balances, taking into consideration the 77-day zero period that was previously granted.

Six builders who did not give their consent or make any financial deposits are the targets of the case. These builders' 85 apartments have been sealed by the authority and will now be put up for auction in order to recoup unpaid debts. Five of the remaining builders gave their assent but did not pay, and 17 of them made partial deposits.

According to officials, the planned auctions and the sealing of apartments are a part of a larger initiative to guarantee compliance and pay off outstanding debts. In order to protect homebuyers' interests and comply with government regulations, the campaign seeks to expedite project completion.

"The Noida government should move quickly to provide these 12 housing projects the waivers they are due. According to Dinesh Gupta, secretary of the Confederation of Real Estate Developers Association of India (CREDAI), a lobbying organization for realtors, "this move will benefit hundreds of homebuyers, who will be able to get registry done and get property title into their names in these 12 projects."

Source: Hindustan Times