Noida Realtors to Benefit from Additional Dues Waiver Policy
Realtors in Noida who have applied under the Uttar Pradesh government’s reschedulement policy for legacy dues and made the required 25% upfront payment are now eligible for a second dues waiver. This additional waiver could further reduce their outstanding dues. The first waiver, which covered penalties and interest for the two years of the Covid-19 pandemic, has already been granted to developers who applied for the scheme, significantly reducing their ballooning dues.
The new relief targets a two-year period when construction was halted within a 10km radius of the Okhla Bird Sanctuary due to a National Green Tribunal (NGT) order. This period spans from August 14, 2013, to August 19, 2015. Out of the 27 builders in Noida who agreed to the policy terms, about 10-11 are eligible for this additional dues waiver.
Noida Authority CEO Lokesh M stated that an ongoing assessment will individually handle developers’ applications. This aligns with the UP government’s rehabilitation policy announced last December, based on the Amitabh Kant committee’s recommendations to revive stalled projects. The policy stipulates that the zero-period benefit will be granted on a case-by-case basis, considering the specific circumstances of each project. Previously, the Authority had provided a zero-period waiver to several developers due to NGT orders, but for a shorter duration. It is expected that the previously granted zero-period duration will be deducted from the current two-year period.
The Confederation of Real Estate Developers’ Associations of India (Credai) has expressed approval of the move. Credai secretary in western UP, Dinesh Gupta, stated that this will help developers clear their dues quickly and accelerate the registration process for homebuyers, providing much-needed relief for stalled projects. Gupta also urged the Authority to address issues related to time extension charges for delayed projects, citing reasons beyond developers’ control, such as farmers’ protests and environmental restrictions during winter.
Manoj Gaur, Credai president in NCR, added that the Noida Authority has acknowledged the hurdles developers face while ensuring quality and timelines of projects. However, developers have also been demanding zero-period benefits for other GRAP restrictions imposed every winter. Stopping construction during these periods not only increases costs but also extends project timelines as it takes time to remobilize manpower.
The additional dues waiver is a significant step towards alleviating the financial burden on developers and expediting the completion of stalled projects. This move is expected to benefit both developers and homebuyers, fostering a more robust real estate market in Noida.
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