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The Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has hired a consultant to resolve the impasse between real estate firms and Noida and Greater Noida development authorities over approximately Rs 39,000 crore in legacy land dues. The deadlock has caused a halt to registries in residential societies throughout Noida, leaving residents facing incomplete amenities.
Developers have requested a rebate on accrued penal interest from years of defaulting. The consultant is expected to submit a report within a month, proposing a potential roadmap for resolving the issue. UP RERA chief Rajive Kumar intends to share the report with the respective authorities and the state government, who will decide on the implementation of the recommendations.
A meeting between representatives of UP RERA, the two development authorities, and developers is also scheduled to discuss the matter. At the national level, a committee led by India's G20 Sherpa and former Niti Aayog CEO Amitabh Kant has been established by the Union Ministry of Housing and Urban Affairs to address the stalemate affecting stalled housing projects across the country.
Noida CEO Ritu Maheshwari stated that developers of 20 stalled projects in Greater Noida and 10 in Noida have applied to clear land dues under the reschedulement policy. According to an interview captured and published by ET Realty, she stated that some builders have already paid 10% application amount to apply under the policy which is likely to open up the flat registry for 30 projects. She impressed that the Authority intends to take strict action against those builders who are not willing to clear dues, also mentioning it’s plans to cancel the land allotment of defaulting builders and take over their plots or under-construction towers and sell them to new promoters on a case-to-case basis.
In an effort to expedite the process, 19 builders have also applied under the flat-wise registry scheme, with 15 receiving permission. The permission remains valid for three months, and during this period, builders can deposit the amount and get the registry of flats done according to the amount.
The realtors' organization, National Real Estate Development Council (NAREDCO), has written to the Infrastructure and Industrial Development Commissioner (IDC) seeking intervention. In an interview captured by ET Realty, NAREDCO president RK Arora was quoted saying, "We have asked the IDC to adopt a developer-friendly policy of settlement of land dues. We urged him to adopt a state-level settlement policy similar to the 'Vivad Se Viswas' scheme announced by the Union finance minister in the Budget 2023 and the 'Samadhan Se Vikas' scheme launched by the Haryana government, offering a rebate for clearing land dues payable to Noida, Greater Noida, and Yamuna Expressway Industrial Development Authorities."
The resolution of this issue is expected to have a significant impact on the real estate market in the region. A favourable outcome would not only provide relief to developers but also to homebuyers who have been waiting for their properties to be completed and registered.
In conclusion, UP RERA is actively seeking a resolution to the deadlock between real estate companies and Noida and Greater Noida development authorities over legacy land dues. By hiring a consultant and organizing meetings among stakeholders, the authority hopes to find a viable solution to benefit residents, developers, and local authorities. This, in turn, will help revive the region's real estate market, restore confidence among homebuyers, and foster economic growth.
This story was first published in ET Realty.
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