With the intent to fulfil the target of delivery of a minimum 80,000 flats to homebuyers in the coming two months, the Noida, Greater Noida and Yamuna expressway development authorities are determined to re-launch their rescheduled payment rule.
Developers of cooperative housing projects whose dues remain unpaid yet will benefit from this. These dues altogether amount up to Rs 20,000 crore. Consequently, it is also believed that homes will be delivered faster that are being delayed since the developers have been unable to get occupancy certificates.
On one hand, Noida Authority has prolonged the scheme till March 15, the Yamuna Expressway Industrial Development Authority (YEIDA) will permit this convenience till the end of June 2018. Greater Noida will probably pass a proposal to facilitate developers to draw the benefits of this alternative at its imminent board convention on February 1.
As per officials, a large number of flats are nearly ready in the three regions. However, the projects are yet to get completion certificates from the corresponding authorities since crores of rupees are still awaited from builders. Developers are in debt to Noida – Rs 11,000 crore, Greater Noida – Rs 7,500 crore and YEIDA – Rs 2,500 crore.
The adjusted payment plan facilitates the realtor draw benefit of a fresh payment plan for obligations corresponding to the land cost, if it has consummated a project but not been able to get a completion certificate. Those developers who owe more than Rs 500 crore will have to make payment of10% of the amount, which will make them eligible for a no-dues certificate and following it, an occupancy certificate. Those who owe less than Rs 500 crore will have to pay 15% of the whole amount for getting a compulsory document prior to registration of the flats and their delivery to home buyers.
The leftover dues will need to be paid by the builders in part-payments. The ‘rescheduling’ policy was initiated previously as well in all the three regions but had expired in 2017.
In the December of 2017, the UP Chief Minister had instructed the three authorities to ascertain that 80,000 homebuyers in the three cities get delivery of their flats by March 2018.
“We have about 76 ongoing projects of about 36 builders in our area,” said a Noida Authority staff member. “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.
Greater Noida has an excess of 2 lakh flats from 200 projects awaiting delivery, while in YEIDA, 7,000 flats are waiting to be delivered 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.