Noida authority re-introduces part-payment plan to meet Yogi's flat target

Aiming to meet the target of delivering at least 80,000 flats to homebuyers in the next two months, the Noida, Greater Noida and Yamuna expressway development authorities have decided to re-introduce their rescheduled payment policy.

This will give relief to developers of group housing projects who are yet to pay dues that collectively amount to Rs 20,000 crore. As a result, it is also expected to speed up the process of delivery of flats that currently can’t be handed over because the developers will not be able to procure occupancy certificates.

While the Noida Authority has extended the plan till March 15, the Yamuna Expressway Industrial Development Authority (YEIDA) will allow this facility till June 30. Greater Noida is likely to clear a proposal to allow builders to avail of this option at its upcoming board meeting on February 1.

According to officials, many flats are almost ready in the three areas but the projects have not received completion certificates from the respective authorities because there are crores of rupees pending from builders. Developers owe Noida Rs 11,000 crore, Greater Noida Rs 7,500 crore and YEIDA Rs 2,500 crore.

The rescheduled payment plan allows the realtor to avail of a fresh payment policy for dues against the land cost if it has completed a project but is unable to get a completion certificate. Those builders who have over Rs 500 crore dues will have to pay 10% of the amount, which will entitle them to a no-dues certificate, and subsequently, an occupancy certificate. Those who have less than Rs 500 crore dues will have to pay 15% of the total amount to get the mandatory document before flats can be registered and handed over to home buyers.

The remaining dues will need to be submitted by the builders in instalments. The ‘reschedulement’ policy was introduced earlier too in all the three areas but had lapsed last year.

Last month, chief minister Yogi Aditya Nath had instructed the three authorities to ensure 80,000 homebuyers in the three cities get their flats by March 2018.

“We have about 76 ongoing projects of about 36 builders in our area,” said a Noida Authority official. “Currently, we are looking at an outstanding of nearly Rs 11,000 crore. One of the reasons for the delay in handing over possession to homebuyers is the dues we need to recover from the builders. With the extension of the rescheduled payment plan, we will be able to clear this builder-buyer logjam and start handing over homes to thousands of buyers at the earliest,” the official added.

In Greater Noida, more than 2 lakh flats have to be delivered across 200 projects, while in YEIDA, 7,000 flats have to be handed over by March 2018.

“First the builder will have to apply for the plan and pay up. Thereafter, the builder will have to complete all formalities with the planning department regarding the completion according to building bylaws and checklist mandatory for completion. Only then will the flats be ready for registry and handing over,” said a YEIDA official.

Source- ET Realty