Under consideration by the Uttar Pradesh government is the implementation of a co-development policy aimed at revitalizing stagnant projects in Noida and Greater Noida, as per sources familiar with the matter (Source: B2B Chief). A preliminary initiative is already underway, involving real estate developer Hawelia Group taking charge of a partially completed 22-acre project, Shree Radha Sky Garden, in Greater Noida. The new developer, Hawelia Group, has committed to delivering over 2,000 flats as part of this endeavor.
In addition to completing the project, Hawelia Group has undertaken to settle outstanding dues, including Rs 175 crore owed to the Greater Noida authority, approximately Rs 63 crore in construction financing, and Rs 20 crore owed to vendors. To ensure successful project completion, an additional investment of Rs 450 crore is required. Nikhil Hawelia, the Managing Director of Hawelia Group, expressed that the proposed co-development policy would enable the new developer to secure funds from the market, a strategy unfeasible under the existing management model.
Pending approval in the upcoming board meeting, the Noida and Greater Noida authorities are poised to greenlight this proposal, potentially paving the way for the revival of numerous other stalled projects. Nikhil Hawelia highlighted that the Hawelia Group secured a Memorandum of Understanding with the Uttar Pradesh government during the UP Global Investment Summit 2023, demonstrating their commitment to resolving dormant projects and fostering investment.
According to the Confederation of Real Estate Developers’ Associations of India (CREDAI), the Noida, Greater Noida, and Ghaziabad regions collectively have 190,000 units, valued at Rs 1 lakh crore, stuck in limbo. In Greater Noida alone, 36 real estate projects are entangled in insolvency proceedings. Within the Greater Noida project overseen by Hawelia Group, while 2.5 million sq ft has been successfully delivered by the existing developer, the new builder will complete an additional one million sq ft. Furthermore, a potential for an extra 2 million sq ft of development exists.
The present selling price in the project stands at Rs 3,500 to Rs 3,800 per sq ft, a figure expected to be revised upwards after initial work is completed, making the project more viable. Hawelia Group has gone the extra mile in resolving RERA cases filed by buyers and repurchasing properties.
The staggering amount of dues—estimated to be around Rs 40,000 crore—is owed to the Noida, Greater Noida, and Yamuna Expressway authorities, encompassing premiums, interest, and penal interest for allotted plots at varying stages of execution.
Historically, other developers have engaged with projects exclusively under contractual or debt management frameworks, avoiding financial, legal, and authority responsibilities. Over the past 7 to 10 years, a substantial number of these legacy stalled projects have been identified in the Noida and Greater Noida regions. Hitherto, the resolution for such projects has occurred either through NCLT proceedings, under Section-8 of the RERA Act, 2016, or via other legal avenues.
The proposed co-development policy could potentially alleviate this issue, allowing new developers to raise funds through debt based on their net worth and credit ratings, since the defaulting promoters lack the necessary credit ratings for such financial undertakings. This innovative approach could offer a lifeline to the beleaguered real estate projects in the region.
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