Noida Surveys Stalled Projects after Kant Committee

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    In response to the recent report by the central committee led by former Niti Aayog CEO, Amitabh Kant, proposing solutions for stalled real estate projects nationwide, the Noida authority has initiated a comprehensive survey to gather information on each of these stagnant projects. The survey is set to be finalized within the next fortnight and aims to establish the extent of project delays caused by financial difficulties.

    Prabhas Kumar, Additional CEO of the Noida authority, elaborated, “The survey’s scope encompasses identifying the number of apartments affected by these projects, quantifying unsold units, and providing an up-to-date project status. This exercise is crucial for determining the current status of each delayed project and devising appropriate remedies to safeguard the interests of homebuyers.”

    The Kant committee’s recommendations advocate the formulation of a robust policy framework capable of addressing challenges encountered by the real estate sector nationwide. Furthermore, it urged the Uttar Pradesh government to permit the registry of flats without necessitating developers with outstanding land cost dues to settle them first. Consequently, the Noida authority is now actively quantifying the financial dues associated with each of these stalled projects.

    Sources indicate that approximately 200 stalled realty projects are estimated to be affected, with a cumulative total of around 167,000 units experiencing delays. The combined dues owed to the Noida and Greater Noida authorities amount to roughly ₹50,000 crore, inclusive of penalties levied due to developers’ payment defaults.

    The Kant report’s proposal advocates against imposing penal interest, suggesting the recovery of only the principal sum from developers. Additionally, the report suggests that the authority could take possession of unsold developer inventory, undeveloped land, and other assets as collateral, thereby enabling the registration of completed flats handed over to buyers.

    Saumya Srivastava, Officer on Special Duty for the Greater Noida authority, affirmed, “The authority intends to assess a developer’s unsold inventory, undeveloped land, and other dispute-free assets to determine their suitability as collateral for facilitating registration.”

    In the upcoming board meetings, the Noida and Greater Noida authorities plan to deliberate on the Kant committee’s findings and request state government endorsement for the report’s implementation, possibly with necessary adjustments.

    Amit Modi, Former President of the Western Uttar Pradesh chapter of the Confederation of Real Estate Developers Association of India (CREDAI), commented, “If enacted, Amitabh Kant’s report holds significant promise for addressing prevailing sectoral challenges and would greatly benefit homebuyers.” Buyers have emphasized the importance of attaching personal assets of developers as guarantees, hoping for a resolution to their prolonged issues.

    RK Gupta, a homebuyer awaiting possession for a decade, mentioned, “The Uttar Pradesh Real Estate Regulatory Authority has advised attaching developers’ personal assets like homes, vehicles, and jewelry as guarantees in situations where developers have exhausted other mortgage avenues. This approach could facilitate dues recovery and contribute to resolving homebuyer concerns.”

    So, the proactive steps taken by the Noida authority in response to the Kant committee’s recommendations indicate a potential turning point for resolving the protracted issues surrounding stalled real estate projects. The comprehensive survey and proposed policy changes hold promise for easing the concerns of homebuyers and reinvigorating the real estate sector.

    Also read: Noida Real Estate Crisis: Government Steps in with Panel Mediation for Delayed Homeowners

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