Noida authority sends notice to developers with pending projects in NCLT

NOIDA: The Noida authority on Friday said that it has issued notice to multiple realtors, whose realty projects are pending in the national company law tribunal (NCLT), asking them that they can use the rebates on interests on their financial dues if they manage to withdraw their cases on trial before the NCLT.

The authority has given them 15 days to either get free from NCLT cases or they will not be able to use provisions of the state government policy that offers interest waivers for two years of Covid 19 period when the construction work was disrupted.

“We are sending letters to all realtors asking them to take benefit of the state government policy and resolve issues to obtain permission for registry. If NCLT cases will be settled then we will extend the benefit of this policy to the realtors. We have given 15 days to those who have cases pending in NCLT,” said Lokesh M, chief executive officer of the Noida authority.

Also, the Uttar Pradesh government has offered them the opportunity to take rebates for the period when the construction was disrupted, due to other court cases. To be sure, there are at least 30 projects of different realtors, who turned defaulters and went bankrupt facing trials before the NCLT.

As per the norms of the state government policy, which was announced on December 21, 2023, if a company is facing trial in NCLT, it cannot take benefit of this policy, said officials.

“If the NCLT cases are resolved in 15 days’ time in a realty company then they can apply to take benefit of the rebates on interests imposed on them for their default in payment of the land cost dues,” said a Noida authority official, aware of the matter.

“The realtors bought land for realty projects after payment of 19 percent and the rest amount they were to pay in installments. And if they default, they were to pay penal interests thereby increasing the dues component against a project. After realtors failed to pay dues to government or others such vendors or contractors or investors, they filed writs in NCLT dragging the project into the corporate insolvency resolution process,” the official added.

The authority is of the view that if the realtor can pay to investors, vendors, banks or the buyers, who need their money back then these cases can be resolved and the realtor can take benefit of the state policy that offers waivers and also other benefits.

The realtor can pay 25 percent of the dues after getting rebates upfront and 75 percent can be paid in one to three years’ time. Also, the realtor becomes eligible to get permission for registry in favour of the buyers thereby resolving the registry issues pending for many years.

Dinesh Gupta, secretary, confederation of real estate developers association of India (CREDAI), said they welcome the move of the Noida authority because it can benefit both the buyers who are stuck, and also realtors, who are also suffering.

“If a realtor will be able to resolve the NCLT cases then he can get the benefits of the state policy. We will discuss this and pursue those who can take benefit of this policy,” he added.