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In a potentially game-changing move for real estate developers, the Yamuna Expressway Industrial Development Authority (YEIDA) is poised to introduce a transformative policy during its upcoming board meeting. The authority is contemplating the elimination of penal interest on financial dues for group housing projects along the Yamuna Expressway area. Furthermore, they are exploring the possibility of offering a 'zero period' for housing projects caught in legal disputes between the authority and local farmers.
Arun Vir Singh, Chief Executive Officer of YEIDA, affirmed that the board will deliberate on and decide upon a one-time settlement policy tailored for realty projects, aimed at resolving their outstanding financial obligations. If greenlit, this policy will go a long way in alleviating the financial burdens of realtors, ultimately providing relief to countless homebuyers eagerly awaiting the completion of their units.
The introduction of this one-time settlement (OTS) policy would entail realtors being exempt from incurring penal interest, effectively wiping away the interest that had accrued during the protracted legal battles between farmers and the authority, which had severely disrupted construction activities.
YEIDA initially allocated housing land in the years 2009-10, with realtors making an initial payment of 10%. Despite repeated notifications, a significant number of real estate developers failed to clear the remaining 90% of the land cost. Consequently, the authority imposed standard interest on the unpaid 90% and punitive interest for any defaults, leading to a substantial accumulation of financial dues.
In response to fervent appeals from realtors, YEIDA has now decided to waive the punitive interest, a move set to benefit approximately 13 real estate developers operating in the Yamuna region, and indirectly, around 7,000 anxious homebuyers. YEIDA also disclosed its intention to recover an estimated ?9,000 crore in outstanding financial dues from these realtors involved in various real estate projects.
Under the proposed OTS scheme, the board may stipulate that realtors make partial payments to be eligible for the interest waiver. However, it must be noted that those who fail to meet the criteria for partial payments will not be able to take advantage of this new scheme.
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