In a bold move, the Greater Noida Industrial Development Authority (GNIDA) has announced its intention to cancel allotments for builders who have failed to initiate construction, exceed project deadlines, and neglect their outstanding dues. GNIDA has taken this step to address the concerns of homebuyers and ensure accountability in the real estate sector. To evaluate the status of construction and outstanding payments, GNIDA has appointed consultant firm Currie & Brown, who will submit a comprehensive report within one month. Based on the findings, GNIDA will determine the fate of these non-performing projects and potentially reassign plots to new entities.
During a recent review meeting presided over by GNIDA CEO Ritu Maheshwari, it was brought to light that numerous housing, commercial, and institutional projects in Greater Noida remained incomplete despite the lapse of their deadlines. Many developers have failed to commence construction even after being allotted land, leaving homebuyers in a state of distress.
To assess the situation and gain a clear understanding of delayed projects, Currie & Brown will conduct an extensive survey of nearly 50 ongoing projects at various stages of construction in Greater Noida. The survey will evaluate the progress of construction, outstanding dues, and the feasibility of completing these projects.
This decision is aimed at safeguarding the interests of homebuyers, who have suffered greatly due to delays and mounting dues owed by developers. GNIDA, in collaboration with Currie & Brown, will make informed decisions regarding the fate of non-performing developers and take necessary actions. However, projects currently involved in litigation or pending in the National Company Law Tribunal (NCLT) will follow separate proceedings. This also applies to the ongoing Supreme Court hearings for projects associated with the Amrapali and Unitech groups.
Startling data provided by GNIDA reveals that out of approximately 193 projects in Greater Noida, around 120 are operational, while nearly 50 projects face significant delays. Builders collectively owe an estimated Rs 40,000 crore to the authorities, with the Noida Authority being owed Rs 26,000 crore and the Greater Noida Authority owed approximately Rs 14,000 crore.
GNIDA officials have expressed deep concern over the lack of progress and intentions displayed by certain developers to clear their dues and complete their projects. Consequently, GNIDA has decided to cancel allotments for such builders. The comprehensive survey conducted by Currie & Brown, which is expected to be completed within a month, will determine the number of incomplete projects and assess their viability for delivery or revival. GNIDA will proceed with the cancellation of allotments based on these assessments.
As part of its proactive approach, GNIDA will require developers to open escrow accounts to facilitate potential refunds to buyers if necessary. During the review meeting, it was also decided that allotments for entrepreneurs who have failed to obtain approved maps despite taking possession of plots would be cancelled. GNIDA will issue notices to industries operating without completion and functional certificates, and strict action will be taken if compliance is not ensured.
Currie & Brown’s response to this development is currently awaited. GNIDA’s actions aim to instill confidence in the real estate sector, protect the rights of homebuyers, and promote transparency and accountability among builders in Greater Noida.