Noida and Greater Noida authorities are contemplating a co-developer policy to resolve the longstanding issue of incomplete housing projects. The proposed policy would allow new firms to invest in and complete these projects, provided they clear nearly INR 40,000 crore in land dues. This move could bring relief to many homebuyers who have been waiting for a decade for their homes. The policy, initially suggested by the Confederation of Real Estate Developers Association of India, also includes potential incentives for developers prioritizing clearing the dues.
In a move aimed at addressing long-standing issues, Noida and Greater Noida authorities are deliberating over a co-developer policy. The policy is intended to tackle two main challenges - the completion of suspended housing projects due to funding shortfalls and the recovery of authorities' pending dues.
The co-developer policy would allow companies to invest in and conclude these projects, bypassing the need for independent co-developing arrangements, which have often led to stalled projects in the past. However, the new firms stepping in will be tasked with the hefty responsibility of clearing close to INR 40,000 crore in land dues.
This proposed policy is expected to provide relief to countless homebuyers who have been waiting for the completion and registration of their homes for approximately a decade.
Ritu Maheshwari, CEO of both authorities, shared that the co-developer policy was suggested by the Confederation of Real Estate Developers Association of India (CREDAI) as a solution to the deadlock over land premium dues. Maheshwari added that the authorities may offer incentives to developers willing to prioritize clearing the dues.
Greater Noida projects are likely to benefit more from this policy compared to their Noida counterparts, given their proximity to completion. A similar policy was introduced in 2017, but it did not gain traction due to land dues-related complications.
Gaurav Gupta, Secretary of CREDAI (NCR), has urged the state government to introduce revised policies, allowing co-developers to complete stalled projects and rationalizing the land dues. Gupta emphasised the need for authorities to provide the necessary approvals in a timely manner to assist new developers in meeting project deadlines.
Currently, builders owe over INR 39,500 crore to the authorities, with most projects launched around a decade ago remaining unfinished. While the practice of engaging new developers to finish stalled projects is not new, Gupta underscored that the current situation calls for a policy to complete these delayed projects.
To recover its dues, the authorities have initiated sealing and cancelling unsold inventories. However, this has proven ineffective due to the creation of third-party rights in most cases. In response, the authorities proposed a rescheduling policy earlier this year that allows builders to settle dues in four instalments over two years.
In conclusion, the proposed co-developer policy represents a critical step towards resolving the long-standing issues of uncompleted housing projects and unpaid dues in Noida and Greater Noida. While challenges remain, including the rationalization of land dues and securing timely approvals, the move holds promise for countless homebuyers awaiting the completion and registration of their homes.
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