Uttar Pradesh Government has decided that it will give allowance to builders and real estate companies to register properties. The condition is that only if they clear 25% of the dues.
The Government has also forgiven the penalties of builders and reduced the interest on dues by Noida real estate developers. This has eased the way for the homebuyers of Noida to get properties registered in their names.
The government, in an official statement, announced its approval of select recommendations from the central committee led by former Niti Aayog chairman Amitabh Kant. Property registrations will be permitted once real estate firms settle 25% of their dues, with a notable reduction after the government waived penal interest summed up between April 2020 and March 2023.
A huge number of flats are stalled in the NOIDA Greater NOIDA and Yamuna Expressway areas. The estimated numbers go as high as 240,000 to 350,000. The government’s decision to waive fines and slash interest rates would help a lot of Noida Homebuyers to finally get delivery.
A lot of these stalled flats are just unfinished, but there are flats where Noida Realtors have completed the project. These completed projects are still counted as stuck flats because they have yet to be delivered due to the non-payment of land dues to the regional authority. This non-payment of dues does not allow the authority to release the Occupancy Certificates to the builders. These occupancy certificates are required before the homebuyers can register their properties.
When the number of homeowners with a possession certificate who are unable to register their properties is considered, it reaches a whopping 165,000. The decision to pay 25% will benefit all these homebuyers of Noida.
The three authorities in Gautam Budh Nagar district are grappling with the recovery of at least ₹70,000 crore in land cost dues from approximately 400 realty projects. Financial crises are often cited by promoters as the reason for project delays or outstanding dues. This move aims to revitalize stalled projects, with the UP government waiving penal interest, a long-standing demand of the real estate sector. Developers can now settle 25% of the defaulted amount to obtain permissions for the registry, mortgage, map approval, etc., facilitating the revival and completion of housing projects for homebuyers, according to Manoj Kumar Singh, the additional chief secretary and UP infrastructure and industrial development commissioner.
This initiative is a significant step towards resolving stalled projects, ensuring justice for homebuyers, and benefiting all stakeholders in the sector, emphasized Singh. The proposal to waive penal interest for the April 2020-March 2023 period, presented by the central committee led by Kant on August 21, has been accepted. However, it won’t apply to commercial, entertainment, or recreational projects, including Sports City, a group housing scheme, as mentioned by UP finance and parliamentary affairs minister Suresh Kumar Khanna. The report also suggested allowing homebuyers to register properties even if realtors haven’t cleared dues, a recommendation not adopted by the state.
The Noida Realtors and analysts have largely welcomed these decisions from the Uttar Pradesh Government. These decisions will be beneficial for a lot of Noida Homebuyers. This will further increase the trust of people in the Noida Real estate Market. The flats in Noida have always been a dream home for a lot of people.