Noida Targets Developers for Relief Package Non-Compliance
The Noida Authority has initiated a stringent crackdown on developers who have failed to comply with the terms of a relief package based on the Amitabh Kant committee’s recommendations. This Relief package was designed to assist developers in rescheduling their dues. However, several developers have not deposited the required 25% of recalculated dues, even after benefiting from a Covid zero-period reduction.
As a result, the Noida Authority announced it will seal unsold flats and vacant land in three specific projects: Grand Omaxe in Sector 93B, Antriksh Golf View in Sector 78, and Matrott in Sector 76. These projects have been identified with significant unsold inventory and vacant land, which will be sealed and auctioned to recover dues. For instance, the Omaxe project includes 9,000 square meters of vacant land, while Antriksh Golf View has 27 unsold flats and Matrott has five.
In addition to these actions, the Noida Authority has issued a one-week ultimatum to developers of 12 other projects to deposit 25% of their dues. Failure to comply may lead to complaints being filed with the police’s economic offences wing for misappropriation of funds received from homebuyers. These projects include Stylome, Laurel, Arista, Mahagun Moderne, Paras Tierea, Eco City, Helios, Antriksh Golf View 1, Phase 2, AVS Orchid, Orchard, Windsor Court, and Celeste Towers.
The cumulative recalculated dues for these projects amount to Rs 3,093 crore, with 5,505 unregistered flats involved. Noida Authority CEO Lokesh M stated that a more aggressive approach is being adopted against non-compliant builders, with immediate action taken where unsold inventory or vacant land is identified.
Out of 57 stalled projects eligible for relief Package under the government order of December 2023, only 22 have deposited 25% of their dues, totaling Rs 275 crore. In contrast, dues for six builders have been nullified. Additionally, 2,558 flat buyers across 28 projects have been granted permission for registry, with 1,298 registries completed.
The relief package aims to revive 2.4 lakh stalled flats, primarily in Noida and Greater Noida, offering a two-year ‘zero period’ waiver of penalties and interests during the Covid pandemic. This waiver has significantly reduced the total dues for developers. Developers affected by the National Green Tribunal’s construction ban near the Okhla Bird Sanctuary are also eligible for a zero-period waiver from August 2013 to June 2015.
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