Noida Authority Extends Relief Policy for Stalled Real Estate Projects
The Noida Authority has made a crucial decision regarding stalled real estate projects. They will keep the Uttar Pradesh government's rehabilitation policy in force. This move brings fresh hope to thousands of homebuyers waiting for their flats to be completed and registered.
Policy Continuation with Conditions
Authority CEO Lokesh M clarified the decision. He stated the policy would continue but without blanket relief. Builders who failed to deposit the mandatory 25% of recalculated dues within set timelines will face case-by-case examination. Each request will go before the board for approval.
There will be no automatic restoration of benefits. Any further concession requires explicit sanction from the board. This approach ensures careful scrutiny of each developer's situation.
Reversal of Earlier Stance
The Authority initially planned to withdraw policy benefits from non-compliant developers. They reversed this stance during their January 3 board meeting. Instead, they chose to continue with the state government's December 2023 order aimed at reviving legacy stalled projects.
This back and forth follows an earlier decision from October 3. During that 219th board meeting, the Authority decided to withdraw benefits in 19 cases. Developers in those cases failed to deposit the initial 25% by the October 24 cutoff date. The accounts department began recalculating dues and issuing fresh demand notices at that time.
Current Project Status
According to board agenda documents, 57 projects fall under this policy. This excludes Amrapali, Unitech and projects pending before the National Company Law Tribunal. Among these 57 projects:
- 36 projects deposited the full 25% of dues
- 11 projects paid only partial amounts
- Four developers gave consent but made no payment
- Six builders neither gave consent nor deposited any amount
Builders have deposited Rs 561 crore toward the 25% dues and partial payments. Overall collections, including instalments, now stand at Rs 872 crore.
Registration Challenges Persist
Despite the policy push, registrations remain sluggish. Across the 57 projects, there are 21,034 unregistered flats. Permission for registration was granted for 6,855 flats against 25% deposits. However, only 4,134 registrations have been completed so far.
This represents about 60% of the eligible stock. Authority officials say registration camps are held regularly. Meetings with developers continue. Builders cite poor response from flat buyers as a key hurdle.
Litigation and Future Steps
The Authority flagged several projects under litigation or revision proceedings. These cases are before courts, NCLT, or the state government. Benefits could be considered only if pending cases get withdrawn or disposed. Dues must also be recalculated according to government orders.
These orders grant zero period relief for Covid disruptions or National Green Tribunal related construction bans. The board now gives developers additional time. They will decide future action if any developers come forward to deposit the 25% advance.
