The Greater Noida Industrial Development Authority (GNIDA) has initiated the registration process for more than 6,500 flats across various stalled projects, as disclosed by officials familiar with the matter. This strategic move is poised to yield positive outcomes, with approximately 30 real estate developers stepping forward to settle their outstanding debts under the Uttar Pradesh government’s rehabilitation package for stalled projects.
Under this rehabilitation package, developers are offered zero periods, during which penalties and interest charges are waived. Moreover, the recalculated dues are rescheduled to facilitate prompt execution of property registrations. Additionally, the implementation of a co-developers’ policy is mandated to expedite the completion of stalled housing projects.
During the zero period, developers are eligible for waivers on penal interest incurred between April 1, 2020, and March 31, 2022, to account for disruptions caused by COVID-19 and construction delays due to court orders. To qualify for the registry of apartments in their respective projects, developers must initially settle 25 percent of their total dues, after deducting penal interests.
Notably, developers representing nearly 30 stalled projects have agreed to comply with this requirement, paving the way for the registry of apartments. GNIDA anticipates receiving approximately Rs 350 crore from these developers, facilitating the expedited registration of flats within one to two months upon payment of the initial dues.
It is imperative to highlight the significant debt burden owed by real estate developers to the development authorities in Gautam Budh Nagar. Specifically, the Noida Authority is owed approximately Rs 26,000 crore, while the Greater Noida Authority faces outstanding dues of around Rs 14,000 crore. The Yamuna Expressway Industrial Development Authority (YEIDA) is owed Rs 4,700 crore.
Under the rehabilitation policy spearheaded by the Yogi Adityanath government, the authority is empowered to cancel the allotment of defaulting builders who fail to avail themselves of the package and settle their dues. Following such cancellations, the authority reserves the right to take over incomplete projects and blacklist defaulting developers for a period of five years across Noida, Greater Noida, and Yamuna Expressway Authority regions.
According to estimates provided by the Noida and Greater Noida authorities, there are approximately 2.4 lakh distressed housing units in the region, of which approximately 1.2 lakh units remain undelivered. While possession has been granted for the remaining 1.2 lakh units, pending registries contribute to the prevailing challenges. Greater Noida alone accounts for at least 96 stalled projects, encompassing 75,000 units.
The Union government’s proactive stance on addressing stalled housing projects is evidenced by the establishment of a 14-member panel led by former NITI Aayog CEO Amitabh Kant in March 2023. Following the submission of the committee’s report in August 2023, the Uttar Pradesh government approved the recommendations on December 19, 2023.
Subsequently, on December 26, the Noida and Greater Noida Authorities rolled out a comprehensive rehabilitation package for developers of stalled or delayed housing projects within their jurisdictions, aligning with the recommendations outlined by the Amitabh Kant committee.