Nearly 60% of stalled projects under the three industrial authorities have sought assistance from the UP government's rehabilitation package, which is set to unlock the registration of over 63,000 flats within the coming year. During a review meeting with Chief Minister Yogi Adityanath on August 24, the three authorities reported that 93 out of 161 projects have already utilized the package introduced by the government last December. To date, developers of these 93 projects have contributed INR 953 crore, and the government expects collecting an additional INR 2,250 crore over the next year.

The Chief Minister has instructed the authorities to implement punishing actions as outlined in the rehabilitation package against non-compliant developers. These measures include canceling land allotments, sealing unused or unallocated flats, and reclaiming unconstructed or vacant areas.

In Noida, 57 projects had fallen behind on land dues, with 22 of them opting for the rehabilitation package. This package provides a two-year grace period, from April 2020 to March 2022, which frees developers from paying interest and penalties for the time their work was halted due to the Covid-related lockdown. So far, the Noida Authority has received INR 304.35 crore from these projects and anticipates collecting an additional INR 904 crore in the coming years. This will facilitate the registration of 7,763 flats.

In Greater Noida, 66 out of 98 defaulter projects have chosen to participate in the rehabilitation package, having collectively paid INR 429 crore in dues to the Authority. The Greater Noida Industrial Development Authority (GNIDA) expects to receive another INR 965 crore, enabling the registration of 48,776 flats in these residential developments. In the YEIDA region, five out of six defaulter projects have deposited INR 172 crore so far, with an additional INR 375 crore anticipated. This will enable the registration of 6,879 flats. To date, more than 8,000 flat registrations have been completed across the three authorities.

The Noida Authority has decided to provide additional relief on a case-by-case basis for projects that were halted due to an NGT order prohibiting construction within 10 km of the Okhla Bird Sanctuary. This relief is available to builders who have accepted the government's package by paying the initial 25% of their recalculated dues.

Meanwhile, the National Real Estate Development Council (NAREDCO) has reached out to the Ministry of Housing and Urban Affairs, requesting that the state government be directed to grant developers additional time to pay their dues and complete construction. NAREDCO has urged the UP government to consider rescheduling land dues over a period of three to five years, taking into account the zero-period entitlement and waiving the requirement for a 25% upfront payment, citing the severe liquidity crisis within the real estate sector. The organization proposed that land dues be collected through an escrow account funded by proceeds from sold inventory and new bookings.

RK Arora, president of NAREDCO's UP chapter, stated that the government should also permit the immediate registration and execution of sub-leases for towers that have received occupancy certificates (OC). He suggested that sub-leases be approved in proportion to the payments collected through the escrow mechanism, and that essential approvals, such as registries, plan approvals, and OCs, be granted upon the restoration of escrow arrangements.

Additionally, the development council has requested a three to five-year extension for project completion without penalties and has called for the state's rehabilitation policy to encompass all types of projects, including residential, commercial, sports cities, IT/ITES, and industrial developments. NAREDCO emphasized that challenges such as the NGT ban, land disputes, and the pandemic have impacted all sectors, not just group housing.

In conclusion, The UP government's rehabilitation package is significantly stimulating stalled projects and facilitating the registration of thousands of flats, though challenges remain in balancing developer relief with stringent compliance measures. Continued collaboration between authorities and developers, alongside potential policy adjustments, will be crucial in ensuring the success and completion of these critical infrastructure projects.