Noida struggles to recover ₹8,300 crore dues from commercial real estate project developers
As per the authority’s data, the biggest defaulter is a mega commercial project located in Sector 94. This project has a dues of over ₹2,100 crore
The Noida authority is struggling to recover land cost dues from owners of commercial projects with most of the project owners filing for bankruptcy and facing trial before the National Company Law Tribunal (NCLT), said senior Noida authority officials, adding that the 10 big defaulters together owe the authority at least ₹8,300 crore.
These 10 big financial defaulter realtors got the land to build commercial buildings or mixed-land use buildings having residential and commercial space on an instalment basis and later defaulted on payments.
Authority officials said the defaulter realtors have either got stay orders on recovery from the Allahabad high court or facing trial at the NCLT which gives them immunity from any action of the authority.
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“We have asked the legal department to study the court cases in great detail and find out ways to recover the dues because the authority is facing a huge losses with regards to these commercial projects, the work on which has currently stopped and the owners have stopped payment of the land cost dues since the past many years. The authority plans to get the stay orders from the court lifted. The authority’s legal department will also be told to seek permission from the NCLT to recover the dues,” said a Noida authority official, asking not to be named.
As per the authority’s data, the biggest defaulter is a mega commercial project located in Sector 94. This project has a dues of over ₹2,100 crore. The authority said the owner of the project filed a petition before the high court against the authority’s notice and obtained a stay order.
The second biggest defaulter is another commercial project in Sector 124 and the developer owes the authority around ₹2,000 crore.
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The NCLT has recently admitted an application by a company that invested money in this Sector 124 project.
The third top defaulter owns a commercial project in Sector 16B and the realtor owes the authority ₹1,450 crore to the authority.
The fourth defaulter owns a commercial project in Sector 52 and has ₹1,100 crore land cost dues.
Noida authority said it is facing a financial crisis owing to all these defaults.
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The Noida authority will intensify the action against these projects once the legal department gets a nod from either the Allahabad high court or the NCLT to proceed.
“We are looking into each case and we will take appropriate action. There are some cases where the authority will cancel the allotment and the undeveloped land will be allotted to a new developer,” said Lokesh M, chief executive officer of the Noida authority.
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