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In a significant development aimed at rejuvenating the stagnant real estate sector, representatives of the Noida, Greater Noida, and Yamuna Expressway authorities are to convene in Lucknow this week. The focus of the meeting will be to chart a path for reviving long-delayed real estate projects in their respective regions. Moreover, discussions will centre around the recommendations put forth by a committee chaired by bureaucrat Amitabh Kant, which proposes waivers for developers, enabling the completion of these stalled projects.
Sources within the authorities have confirmed the presence of Chief Minister Yogi Adityanath at the pivotal gathering. Each of the three authorities has independently compiled reports aligning with the Kant committee's suggestions, which will be presented to the chief secretary.
Central to these deliberations is an assessment of the rebates that authorities would need to extend to developers, should the 'zero period' concept, as advocated by the Kant committee, be implemented. Under this policy, the government would absolve penal interest and other outstanding dues on projects embroiled in legal disputes or land-related issues, contingent on developers committing to project completion within specified timeframes.
The ongoing dispute between developers and the authorities revolves around an estimated debt of approximately Rs 45,000 crore. This protracted disagreement has adversely impacted flat registrations. Developers argue that the penal interest is excessive, while the government stands firm, citing agreements signed during the land allocation phase. The matter currently awaits resolution in the Supreme Court. Officials have reported that approximately 1.7 lakh flats remain stalled across the region due to a variety of issues.
This year, in a bid to address these challenges, the Central government formed a 14-member committee, with former Niti Aayog CEO Amitabh Kant at the helm, tasked with scrutinizing the factors obstructing project progress and proposing remedies for the benefit of homebuyers. The committee's recommendations, submitted in July, encompassed 11 key points specific to Noida and Greater Noida. These encompassed the application of 'zero period' benefits to developers ensnared in disputes, recalculating outstanding dues, and offering rebates as necessary.
Furthermore, the committee strongly advocated for property registrations to be granted in the names of original homebuyers without the requirement to recover outstanding dues. It also proposed waiving interest and penalties incurred during the pandemic period from 2020 to September 2021 and for projects situated within a 10km radius of the Okhla sanctuary that were suspended due to court orders.
Officials have predicted, should such rebates be extended, the Noida Authority may have to forego Rs 7,400 crore, while the Greater Noida Authority would need to relinquish around Rs 6,000 crore.
Data sourced from the authorities reveal that 113 projects in Noida collectively owe Rs 26,570 crore to the Authority. Meanwhile, the Greater Noida Authority is seeking to collect Rs 14,309 crore from approximately 191 projects. The Yamuna Expressway Authority is grappling with 14 group housing projects, which owe over Rs 4,550 crore in dues, causing the registry of over 10,000 flats to remain suspended.
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