Dedicated locality research platform
Dedicated locality research platform
Enter your email address and you will receive
a link to reset your password
The Greater Noida Authority is cracking down on real estate developers who have defaulted on their land cost payments, with a plan to issue recovery certificates, stop-work notices, and cancel plot allotments to recover dues. Officials say the crackdown is likely to begin within a week. A total of 107 realtors owe Rs 5,650 crore in unpaid land costs. So far, 10 developers have applied to clear dues under the GNIDA’s rescheduling policy, and five others have cleared their dues.
The Authority is studying each project and checking their status, and action against builders will be initiated soon. The OSD clarified that recovery certificates will be issued to builders who have not completed their projects and have not paid their dues. Developers who are undergoing an insolvency procedure before the NCLT or other courts will be exempted from such action. Towers of defaulting projects where people are already living will also be kept out of the purview of the crackdown.
Last week, the Authority cancelled the allotment of Niwas Promoters’ group housing plot in Sector 10 over Rs 18.68 crore dues. The builder is yet to complete the project for which land was allotted in 2012. The crackdown is necessary to recover dues from defaulting builders and promote transparency in the real estate sector. The GNIDA is taking a tough stand on real estate developers who have defaulted on their land cost payments, as they need the funds to carry out infrastructure projects.
The recovery certificates will serve as a warning to defaulters that their actions will not be tolerated. Developers who have not paid their dues will not be able to sell their properties until they clear their dues. The GNIDA's tough stand will help ensure that the real estate sector operates transparently and that builders are held accountable for their actions. It will also help the GNIDA to collect the funds it needs to carry out infrastructure projects. The crackdown is expected to be effective in curbing the practice of builders taking money from homebuyers and not completing projects.
In conclusion, the GNIDA's crackdown on real estate developers who have defaulted on their land cost payments is a necessary step to promote transparency in the real estate sector and collect the funds needed to carry out infrastructure projects. The recovery certificates, stop-work notices, and cancellations of plot allotments will send a clear message to defaulting builders that their actions will not be tolerated. This crackdown is expected to be effective in curbing the practice of builders taking money from homebuyers and not completing projects.
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!
