The Noida authority on Tuesday said 12 of 57 housing projects technically qualified for waivers on interest charged on land cost dues for the period when construction was disrupted owing to a ban by the National Green Tribunal.
According to a Uttar Pradesh government policy notified in December 2023, the Noida authority offered waivers on interest to housing projects in which the construction work got disrupted during the Covid-19 period and also for the period when the construction was halted on the orders from the National Green Tribunal. The policy had a provision that the promoter of a housing project claiming Covid-19 interest waivers, has to pay the remaining financial dues to become eligible to claim the NGT waivers, said officials.
โThere are a total of 12 housing project promoters who have claimed NGT waivers. Now we will carry out the assessment of their claim. We need to verify whether the construction work in these 12 projects got affected by NGT orders banning construction. The interest waivers will be passed on to only the eligible projects as per the policy,โ said Lokesh M, chief executive officer, Noida authority.
The state government policy for stalled legacy housing projects offers an opportunity to claim waivers for the Covid-19 period and then pay 25% of total dues upfront and the remaining in instalments over one to three years.
The 12 group housing projects in Noida that availed of the state governmentโs rehabilitation package policy and paid 25% of their dues will be eligible for a second zero period of two years, said the authority CEO.
These projects were affected by the NGT order that halted construction within a 10km radius of the Okhla Bird Sanctuary between August 14, 2013, and August 19, 2015.
โEach project shall be evaluated individually to determine eligibility based on the status of construction at the time and whether applications for occupancy certificates had been submitted. This benefit will only be extended to the 12 builders who deposited 25% of their outstanding dues,โ said Lokesh M.
The authority will also consider the duration of any prior zero period benefits granted to these projects before recalculating dues.
Based on recommendations by former NITI Aayog CEO Amitabh Kant, 57 defaulting projects were identified under the governmentโs stalled project policy. Of these, 29 builders deposited 25% of their dues, amounting to โน276 crore, and others paid partial amounts, bringing the total collection to โน378.73 crore.
The zero period from April 1, 2020, to March 31, 2022, was previously granted to these builders during the Covid-19 pandemic, reducing the overall outstanding amount by โน1,866 crore.
These 12 eligible builders will now be reviewed by the finance department, and their outstanding dues will be recalculated, accounting for an earlier benefit of 77 days of zero period.
The action has been taken against six builders who neither consented nor deposited any money. The authority has sealed 85 flats belonging to these builders, which are now slated for auction to recover outstanding dues. Among the remaining builders, 17 deposited partial amounts, and five provided consent but failed to pay.
Officials said the sealing of flats and proposed auctions are part of a broader effort to ensure compliance and clear pending dues. The campaign aims to facilitate project completion while safeguarding the interests of homebuyers and adhering to government policies.
โThe Noida authority should expedite the process so that these 12 housing projects get waivers that they deserve. 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,โ said Dinesh Gupta, secretary of Confederation of Real Estate Developers Association of India (CREDAI), a realtorsโ lobbying group
