Greater Noida Authority dictates 21 realtors to 'pay waivers or loose allotment'

The Greater Noida authority has recently issued notices to 21 out of the 97 realtors, giving them a final warning to pay their outstanding dues. Failure to comply with this directive may result in the cancellation of their allotments. These realtors have been notified for their failure to come forward and settle their dues under the stalled legacy housing project policy.

On December 21, 2023, the Uttar Pradesh government sanctioned a policy aimed at reviving stagnant legacy housing projects. As per the policy, real estate developers were granted a two-year interest waiver due to the Covid-19 pandemic. Additionally, they were instructed to settle 25% of the land cost dues within 60 days, with the remaining 75% to be paid off over the course of the following three years. 

Officials stated on Monday that despite the availability of the scheme, only a small number of realtors have stepped forward to take advantage of it. The Greater Noida authority has a significant amount of revenue, approximately Rs.8,000 crore, to recover from these realtors. In a notice issued last week, the authority explicitly mentioned that if the realtors do not come forward to apply for the waivers and settle their dues, their allotments will be revoked and their assets will be seized.

The additional chief executive  of Noida Authority, Saumya Srivastava, said, “We are carrying out a site survey of each of these 21 housing project sites to ascertain the state of each project. In the survey that will be completed on Wednesday, we will figure out how much unsold land in a project, and unsold inventory is remaining in each of the 21 projects. Once the survey is completed, we will start attaching the assets in each project.”
The authority took the decision of not disturbing the apartment buyers in these 21 stalled housing projects, and their apartments will remain unaffected in the attachment drive.

According to the secretary of confederation of real estate developers association of India, Dinesh Gupta, the greater Noida authority and the state government are planning to protect the interests of the homebuyers.

He also added, “If the buyers’ interest will be protected then the realty market will win over the trust of the buyers, who are crucial for the industry. These 21 realtors should use the policy and revive their projects on time without facing this action.”