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Earlier this month, a group of real estate representatives from NAREDCO-UP met with the district magistrate of Gautam Buddh Nagar to request relief from the authorities regarding their outstanding payments. The NAREDCO-UP, also known as the National Real Estate Development Council - Uttar Pradesh, explained that they had various issues such as compensation owed to farmers, obstacles and legal disputes related to land ownership that contributed to the outstanding payments.
The realtors' group also attempted to resolve their problems with the Noida Authority, the Greater Noida Authority, and the Yamuna Expressway Authority by seeking mediation from the district administration. However, sources say the District Magistrate Manish Kumar Verma declined their request for mediation, instructing the builders to take their concerns to the appropriate authorities instead.
The District Magistrate is said to be of the opinion that the administration is simply following standard protocol for recovering payments. Sources say he has also asked real estate developers to provide a detailed strategy outlining their repayment plans for the funds owed to homebuyers. This request follows the recent "naming and shaming" campaign launched by the district administration against 101 developers who have outstanding dues worth Rs 503 crore to UP RERA. The administration is said to be also contemplating additional coercive measures against these developers.
The president of NAREDCO-UP has raised concerns about the negative consequences of the alleged forceful recovery actions taken against developers for their outstanding land dues. The association of real estate developers pointed out various challenges such as land disputes, restrictions imposed by NGT on construction, difficulties related to compensating farmers, shortage of funds, the Corporate Insolvency Resolution Process, and demands for substantial charges for time extensions by local authorities. These challenges have affected them over the past decade, causing delays in delivering properties to buyers.
The builders associated believes that if the district administration takes any coercive measures to recover land dues, it would significantly affect the interests of homebuyers, banks, financial institutions, and developers who have invested large amounts of money in the construction during the Corporate Insolvency Resolution Process (CIRP). This would result in prolonged legal battles that would harm the stakeholders' interests and render their investments useless.
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