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The Noida and Greater Noida authorities have unveiled an aggressive six-point strategy with the aim of resolving longstanding challenges in group housing projects, facilitating speedy recoveries from developers, and promoting smoother property registries.
Central to the strategy is the potential cancellation of plot allotments for housing projects that have shown no progress since their inception. For those commercially viable projects that are currently at a standstill, the authorities have paved the way for co-developers to step in and drive them to completion.
Builders who find themselves unable to complete their projects will now have the option to formally surrender them to the authorities. Meanwhile, developers grappling with overdue payments can breathe a sigh of relief as the plan introduces provisions for rescheduling such payments. In essence, this would allow builders an extended two-year period to clear their pending dues in increments.
The outstanding dues from builders in both regions have reached an astonishing figure of over Rs 41,000 crore, with Noida alone being owed a staggering Rs 26,570 crore. Officials have made it clear that projects which haven’t commenced even after years of being allotted will face the likelihood of cancellation. The remaining funds, after the necessary deductions as per the lease deed, will be secured in an escrow account to ensure homebuyers are refunded in such scenarios.
For those projects near completion but mired in liabilities, the authorities have suggested innovative solutions. One such proposal is to allow the registry of flats, with the condition that the authority can take possession of any unsold flats or regions marked for commercial ventures. This would then permit registries equivalent to the value of these unsold assets. A parallel approach would involve treating unsold flats as mortgage collateral, thereby allowing the registry of homebuyers' apartments, which would be equivalent in value to these unclaimed units.
These reformative measures were presented and discussed during the chief minister’s Noida visit this past June. Following this, Manoj Kumar Singh, the Industrial Development Commissioner, ordered a comprehensive analysis, comparing these initiatives with recommendations from a central government committee. This committee, spearheaded by the former Niti Aayog CEO, Amitabh Kant, was constituted to brainstorm resolutions for stalled housing projects.
In conclusion, the decisive steps taken by the Noida and Greater Noida authorities represent a concerted effort to rejuvenate the housing sector in the region. With developers being provided multiple avenues to fulfil their commitments, the future of housing in the twin cities looks promising.
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