Uttar Pradesh Considers Rehabilitation Package and Penalties Suspension to Revive Stuck Housing Projects

    Date:

    Share post:

    The government of Uttar Pradesh is actively considering measures to revive stagnant real estate projects by offering a rehabilitation package and suspending penalties on developers. A high-level meeting of senior officials took place last week in Lucknow, where key recommendations from the Amitabh Kant panel were discussed and consensus was reached on several points.

    One of the key proposals agreed upon is the introduction of a zero-period policy, which entails the suspension of penalties and interest on real estate developers. This policy is intended to provide relief to developers affected by disruptions caused by COVID-19 and the two-year National Green Tribunal (NGT) ban on projects located within a 10-kilometer radius of the Okhla Bird Sanctuary. The government is considering providing a four-year zero period to eligible projects.

    To expedite the revival of stuck projects, the government is also contemplating allowing co-developers to participate, subject to the permission of the relevant development authorities. It’s worth noting that the Kant committee recommended allowing co-developers even without the authority’s consent.

    Additionally, the state government is planning to introduce a comprehensive rehabilitation package aimed at revitalizing delayed projects and benefiting homebuyers. This package may include a partial surrender policy, where developers can surrender a portion of the land, and dues associated with the surrendered land could be waived. It might also offer an extended three-year timeframe for project completion and additional floor area ratio (FAR) to builders upon payment of extra charges.

    However, a consensus was not reached on delinking property registries from outstanding land dues of builders. Concerns were raised by officials from development authorities, who argued that this move could lead to a loss of control over the repayment process.

    The total outstanding dues from real estate developers to development authorities in Gautam Budh Nagar amount to approximately Rs 46,000 crore. Of this, the Noida Authority is owed nearly Rs 26,000 crore, the Greater Noida Authority approximately Rs 14,000 crore, and the Yamuna Expressway Authority has pending dues of Rs 4,700 crore.

    Homebuyers have been advocating for the separation of registries from builders’ pending land dues, which would enable them to register their homes. Sources also indicated that the three authorities have agreed with the Kant committee’s recommendation that, once concession rates are implemented, developers should make an initial payment of 25 percent of the total dues within 60 days, with the remaining 75 percent payable over three years.

    The state cabinet will make a final decision on these proposed relaxations after consulting with the Central government, and further meetings are expected to refine these proposals. The recent meeting, presided over by the chief secretary, included the participation of the industrial development commissioner and CEOs of the Noida, Greater Noida, and Yamuna Expressway Industrial Development Authority (YEIDA).

    Also Read: Greater Noida Achieves Nearly 50% of Investment Target

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    Related Posts

    Latest posts

    Ghaziabad Indirapuram Handover: Progress Update and Prospects for End-July Transition

    GHAZIABAD, India — Officials from the Ghaziabad Development Authority (GDA) have hinted at the imminent handover of the...

    Yeida to Implement New Land Allotment Guidelines Following M3M Dispute

    NOIDA, India — The Yamuna Expressway Industrial Development Authority (Yeida) plans to introduce new guidelines for land allotment,...

    Real Estate Sector Pins Hopes on Modi 3.0: Focus on Infra Development and Affordable Housing

    NEW DELHI — The real estate sector is optimistic that Prime Minister Narendra Modi's third term will bring...

    Suraksha Group to Pay YEIDA in Jaypee Infratech Acquisition

    India (June 11, 2024), a Mumbai-based real estate conglomerate — The Suraksha Group has taken control of debt-laden...