Amitabh Kant’s Recommendations in Action: Strategies Evaluated for Builder Dues in Noida and Greater Noida

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    Noida and Greater Noida authorities have been directed to compile an exhaustive report detailing viable solutions to tackle the challenges stemming from pending builder dues, stalled housing projects, and delayed property registries. The directive, in line with recommendations from the Amitabh Kant committee, aims to address these issues and pave the way for project revival. The report will analyze the fiscal implications if the state government implements the Center’s panel proposals to rationalize interest rates on builder dues or provide a four-year moratorium. Confidential sources familiar with the development disclosed that the report will also evaluate the fiscal consequences of delinking registries from pending dues, a proposition advanced by the Center’s panel, led by former Niti Aayog CEO Amitabh Kant. Last week, these instructions were issued by Manoj Kumar Singh, Development Commissioner of the Uttar Pradesh government’s Industrial Development Commission.

    Upon its completion, the report will be presented to the Uttar Pradesh government for deliberation and decision-making. After thorough discussions between local authorities, the findings will guide the government in crafting a nuanced policy to effectively address these concerns. A reliable source confirmed to Money Control that the government might opt to rationalize interest rates on builder dues or extend a moratorium to developers on their outstanding payments, leading to a partial relinquishment of the accrued builder dues by the authorities.

    Official estimates indicate that real estate developers collectively owe approximately Rs 26,000 crore to the Noida Authority and around Rs 14,000 crore to the Greater Noida Authority. Seeking clarity, the Noida Authority has engaged a chartered accountancy firm to reassess the builders’ dues. This reevaluation is anticipated to conclude within the next six to seven days. Presently, builders in Noida owe approximately Rs 26,000 crore to the Noida Authority. Of this, nearly Rs 9,000 crore pertains to non-litigated projects, while the remaining Rs 17,000 crore is associated with projects entangled in the National Company Law Tribunal (NCLT) or the Supreme Court, as disclosed by a Noida Authority official.

    The Amitabh Kant panel’s recommendations include proposing a moratorium on payments owed by builders to land-owning authorities. This proposition empowers developers to bolster their financial standing and expedite the completion of protracted or stagnant housing projects, with the condition that the builders settle their dues incrementally. The committee further stressed the importance of implementing reasonable interest rates and prioritizing project completion. Numerous real estate projects remain suspended, beset by delays and legal disputes with the Supreme Court and the National Company Law Tribunal (NCLT).

    Gaurav Gupta, Secretary of the NCR chapter of the Confederation of Real Estate Developers Association of India (CREDAI-NCR), affirmed the pivotal importance of safeguarding homebuyer interests and devising comprehensive solutions. Gupta expressed optimism about the imminent implementation of the Amitabh Kant panel’s recommendations, heralding the report as a constructive roadmap capable of effectively addressing these intricate challenges.

    Also read: Uttar Pradesh Government Considers Co-Development Policy to Revive Stalled Noida and Greater Noida Projects

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