Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
The Ghaziabad Development Authority (GDA) has taken a significant step towards curbing rampant illegal constructions by sending notices to branch managers of at least nine banks. The notices direct the banks to conduct thorough verification of layout plans and assess the legality of properties before offering loans for them. The move comes as a response to the escalating issue of unauthorized constructions, particularly within GDA zone 7, which encompasses areas such as Rajendra Nagar, Sahibabad, Lajpat Nagar, Swarup Nagar, Shyam Park, Naveen Park, Radheshyam Park, and Shalimar Garden.
GDA's initiative aims to address the growing concern of unauthorized multi-storey buildings on plots designated for single-storey flats, along with other deviations from the sanctioned layout. Such violations not only strain the existing civic infrastructure including roads, sewers, and water supply systems but also pose a significant challenge to urban planning. In light of this, the GDA vice-chairperson, RK Singh, emphasizes that while the GDA possesses the authority to take actions like demolition, sealing, and filing FIRs against violators as per the UP Urban Planning and Development Act, 1973, the situation has proven to be a deadlock due to banks extending loans without verifying property legality.
To counter this issue effectively, the GDA has not only directed banks to verify map layouts and compliance with regulations before disbursing loans but has also urged them to seek the termination of loans already granted for illegal properties. This approach comes from the understanding that properties financed by banks, if found to be unauthorized, could eventually face demolition or other coercive measures, making it challenging for banks to recover the loaned amount. In response, the GDA suggests that banks should examine their current portfolio of properties that have already received loans. If any of these properties are found to be in violation of norms, banks should initiate the process of recovery and persuade borrowers to provide sureties with legally compliant properties.
While the GDA's endeavour to restrict loans for illegal properties is commendable, some banking officials have expressed reservations. An anonymous bank official notes that the responsibility of verifying the authenticity and legality of properties lies with banks that grant loans. However, in many instances, this due diligence process falls short. This official believes that the GDA's appeal to banks to refrain from lending for illegal properties might not yield the desired outcome. For effective change, the official suggests that clear and unequivocal directives from the Reserve Bank of India (RBI) are necessary.
In summary, the Ghaziabad Development Authority's recent move to collaborate with banks in addressing the issue of unauthorized constructions reflects a proactive step towards urban planning and development. By urging banks to ensure the legality of properties before granting loans and encouraging them to assess the legality of existing loaned properties, the GDA seeks to create a more sustainable and compliant real estate landscape in its jurisdiction. However, the effectiveness of this collaboration might hinge on the regulatory support and guidelines issued by the RBI to ensure consistent and stringent enforcement of property verification procedures by financial institutions.
Propscience is India’s dedicated property news portal. We cover the latest events, news, trends, deals, new launches and more.
All our services and tools are completely free of cost and available 24X7!
We use cookies to give you the best possible service while using our website, please click accept and carry on browsing if you're happy with this. For more information see our Privacy Policy.
Okay, Got it!This disclaimer ("Disclaimer") is applicable to the entire Site. Upon entering the Site it is recommended that you immediately read the Terms and Conditions and Privacy Policy listed therein. Your continued usage of this Site will indicate your unconditional acceptance of the said Terms and Conditions and Privacy Policy. You hereby agree that Propscience reserves the right to modify at any time, the Terms and Conditions and Privacy Policy governing this Site without prior notification. Your usage of the Site implies that you will be bound by any such modification. You agree and acknowledge that it is your responsibility to periodically visit the Site and stay updated with the Terms and Conditions and Privacy Policy of the Website.
The information contained in this Site has been provided by Propscience for information purposes only. This information does not constitute legal, professional or commercial advice. Communication, content and material within the Site may include photographs and conceptual representations of projects under development. All computer-generated images shown on the Site are only indicative of actual designs and are sourced from third party sites.
The information on this Site may contain certain technical inaccuracies and typographical errors. Any errors or omissions brought to the attention of Propscience will be corrected as soon as possible. The content of this Site is being constantly modified to meet the terms, stipulations and recommendations of the Real Estate Regulation Act, 2016 ("RERA") and rules made thereunder and may vary from the content available as of date. All content may be updated from time to time and may at times be out of date. Propscience accepts no responsibility for keeping the information in this website up to date or any liability whatsoever for any failure to do so.
While every care has been taken to ensure that the content is useful, reliable and accurate, all content and information on the Site is provided on an "as is" and "as available" basis. Propscience does not accept any responsibility or liability with regard to the content, accuracy, legality and reliability of the information provided herein, or, for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. No information given under this Site creates a warranty or expands the scope of any warranty that cannot be disclaimed under applicable law.
This Site provides links to other websites owned by third parties. Any reference or mention to third party websites, projects or services is for purely informational purposes only. This information does not constitute either an endorsement or a recommendation. Propscience accepts no responsibility for the content, reliability and information provided on these third-party websites. Propscience will not be held liable for any personal information of data collected by these third parties or for any virus or destructive properties that may be present on these third-party sites.
Your use of the Site is solely at your own risk. You agree and acknowledge that you are solely responsible for any action you take based upon this content and that Propscience is not liable for the same. All details regarding a project/property provided on this Site are updated on the basis of information available from the respective developers/owners/promoters. All such information will not be construed as an advertisement. To find out more about a project / development, please register/contact us to visit the site you are interested in. All decisions taken by you in this regard will be taken independently and Propscience will not be liable for any such loss in connection with the same. This Site is for guidance only. Your use of this Site - including any suggestions set out in the Site and or any use of the resources available on this Site, do not create any professional - client relationship between you and Propscience. Propscience cannot accept you as a client until certain formalities and requirements are met.
We use cookies to give you the best possible service while using our website, please accept it and continue browsing if you're happy with this. For more information see our Privacy Policy