Noida:16 realtors to face action over interest rebate policy

The Noida Authority is set to initiate legal proceedings against 16 developers who have failed to settle their dues under the Uttar Pradesh government’s “stalled legacy housing projects” policy, officials aware of the development said on Sunday.

Despite efforts to clear outstanding amounts, these developers have not utilised the interest rebate benefits offered by the state, they added.

Officials report that 16 out of 57 realtors have not responded to the policy designed to address homebuyers’ issues, prompting the Noida authority to consider legal actions. These may include canceling property allotments, attaching assets, and re-auctioning properties to recover dues.

“The Noida authority will act against these developers as per the provisions of the policy meant for the stalled legacy housing projects. We have informed the board and the state government about the entire process that has been taken as per the policy to resolve the homebuyers’ issues in the stalled housing projects,” said Lokesh M, chief executive officer (CEO), Noida authority.

According to provisions of the policy, announced on December 21, 2023, the authority can cancel the allotment of the realtors’ properties, attach the same, and re-auction it to recover dues and address the homebuyers’ issues.

The authority can also introduce a co-developer that can infuse the funds in a stalled housing project and deliver the units to homebuyers. These 16 housing projects come under the radar of the authority that can also attach other assets of the realtor to recover dues apart from the stalled housing project, the policy states.

Recently, the authority collected ₹276.76 crore from 22 developers, which is 25% of the total ₹830 crore dues. These developers will deliver 3,000 apartments and have been allowed to pay the remaining 75% within a year.

“So far the authority has executed registry of a total of 1,075 apartments after issuing permission in these 22 housing projects for which these realtors paid 25 percent of the dues as they took interest rebates for two years of Covid-19 period as per the policy,” the CEO added.

Additionally, the officials revealed that 14 realtors have made partial payments towards the 25% dues, and once completed, the authority will permit apartment registry. Five developers have settled their dues fully after interest rebates. Once these developers pay the remaining payment and it becomes 25 percent, then the authority will issue permission for the registry of the apartments, they added.

“The Noida authority should address the issues in the remaining 16 projects where the realtors are yet to use the policy and obtain permission for the registry. We hope the issues of all homebuyers will be addressed amicably at the earliest. We will also pursue these developers to use the policy in the interest of homebuyers,” said Dinesh Gupta, secretary of confederation of Real Estate Developers’ Association of India.