Noida to Offer Free Bigger Flats for Owners of Old Buildings Under New Policy

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In a significant move aimed at urban renewal, the Noida Authority has approved a redevelopment policy that offers owners of aging or unsafe residential flats larger homes free of cost, along with temporary accommodation during reconstruction, as published by The Economic Times.

The policy, cleared on June 14, applies to residential buildings that are over 30 years old or declared structurally unsafe by certified engineering institutions such as the Indian Institutes of Technology (IITs) or the National Institutes of Technology (NITs). According to officials, more than 115 private housing projects and numerous Authority-developed complexes in Noida are currently facing deterioration and qualify under the scheme.

Under the policy, homeowners will receive newly constructed flats with a minimum 15% increase in carpet area. Redevelopment can commence only after securing the consent of at least 70% of leasehold residents in a building. During the construction period, developers are required to provide either temporary housing or a monthly rental allowance.

Residents will not be asked to vacate their homes unless relocation arrangements are made. Additionally, developers can only begin selling new units after original homeowners have taken possession of their upgraded flats.

The Noida Authority, established in 1976 under the Uttar Pradesh Industrial Area Development Act, began constructing multi-storey residential housing in 1981. It leased land to private developers, who followed the prevailing building norms of that time. It also built low-rise housing for economically weaker sections (EWS) on a leasehold basis.

However, poor maintenance, seepage, and structural vulnerabilities have plagued many buildings over time. Officials noted that while Apartment Owners’ Associations (AOAs) often manage routine maintenance such as painting, long-term structural audits and repairs are frequently ignored, leaving buildings unsafe during heavy rainfall or earthquakes.

The policy focuses on four primary aspects: structural safety, improved civic amenities, environmental upgrades, and stringent developer accountability. To make the projects financially viable, the Authority will allow an increased floor area ratio (FAR) from the existing 1.5 to up to 2.75. This will enable developers to construct and sell additional units to recover costs.

The redevelopment policy covers three categories:

  • Authority-developed housing projects, such as Mansarovar and Shatabdi Vihar in Sector 52.
  • Cooperative housing societies, including Rail Vihar and LIC Society.
  • Privately built residential complexes.

Developer selection processes will vary by category. For Authority-developed colonies, developers will be chosen through a government bidding process. Cooperative and private societies will have the flexibility to appoint their own developers, provided they meet eligibility conditions that include a proven track record and sound financial credentials.

Every project will be governed by a tripartite agreement among the developer, the Authority, and the respective AOA. The agreement will define relocation terms, new carpet area entitlements, construction timelines, and legal responsibilities. Registration with the Real Estate Regulatory Authority (RERA) will be mandatory for developers before any sale of new units.

To ensure timely execution and safeguard homeowner interests, strict accountability clauses have been included. Developers who fail to meet deadlines or violate agreements could face penalties, including blacklisting.

A grievance redressal cell will also be set up to address complaints related to delays, compromised construction quality, or reduction in promised carpet area.

The redeveloped societies will feature modern infrastructure and amenities such as electric vehicle (EV) charging points, rainwater harvesting systems, and sewage treatment plants. As an added incentive, the Authority has proposed waiving stamp duty and lease rent charges on new lease deeds after the redevelopment is complete.

To streamline the redevelopment process, officials said a single-window approval system is being planned. The Authority will also monitor the disbursal of monthly rent to temporarily relocated homeowners.

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