Uttar Pradesh Authorities Consider Relaxations for Stuck Housing Projects

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    In a bid to address the protracted housing crisis, Uttar Pradesh’s development authorities, including Noida, Greater Noida, and Yamuna Expressway, are poised to convene in Lucknow on September 28. Officials from these authorities will be discussing potential relief measures for developers, the registration backlog for flats, and strategies to resuscitate stagnating or delayed housing projects. These deliberations align with the recommendations outlined in the Amitabh Kant committee report, according to informed sources.

    Uttar Pradesh’s Chief Minister, Yogi Adityanath, is expected to participate in the meeting, accompanied by senior officials from the housing and industry departments.

    One source revealed, “The meeting will delve into the Kant panel’s suggestions for granting concessions and other relaxations to developers to facilitate the completion of delayed projects. Furthermore, the independent reports drafted by authorities concerning the financial implications of implementing the Kant panel’s recommendations will also be scrutinized. Subsequently, the government may decide on waivers or other relief measures for builders to revive projects, thus initiating property registries.”

    The state government may contemplate adjustments to interest rates on builder dues or propose a moratorium on the payment of these dues. Such decisions would entail authorities relinquishing a portion of the funds owed to them by developers.

    Reports suggest that if measures like the “zero period” or interest rate revisions are offered, the Noida Authority may need to forego approximately Rs 7,000 crore, while the Greater Noida Authority might have to relinquish Rs 6,000 crore.

    The “zero period” policy empowers the government to waive penal interest and other obligations for projects entangled in legal disputes or land-related issues. However, this policy would only apply if developers commit to completing their projects within specified timelines.

    The staggering builder dues, which currently stand at almost Rs 45,000 crore across the three authorities, have been a major factor contributing to project delays and impeding flat registrations.

    Officials indicate that real estate developers owe nearly Rs 26,000 crore to the Noida Authority, approximately Rs 14,000 crore to the Greater Noida Authority, and Rs 4,400 crore to the Yamuna Expressway Authority.

    The Kant panel’s recommendations include proposing a moratorium on payments owed by builders to land-owning authorities, allowing developers to stabilize their financial situations and gradually clear their dues. The committee also advocates for reasonable interest rates and emphasizes the importance of completing housing projects.

    Currently, numerous real estate projects remain stalled or delayed, mired in legal disputes both in the Supreme Court and the National Company Law Tribunal, exacerbating the housing crisis.

    Also read: Noida Surveys Stalled Projects after Kant Committee

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