The Noida Authority is considering reaching out to the Economic Offences Wing (EOW) regarding developers who have not utilised the UP-government's rehabilitation package for stalled residential projects. Of 57 defaulting projects, 22 have accepted the package, which provides a two-year zero-period relief from April 2020 to March 2022. The remaining 29 developers, owing about INR 6,900 crore, are ineligible for this relief. Following recent directives from CM Yogi Adityanath, disciplinary actions will be enforced against non-compliant developers. Currently, 28 projects have recalculated dues of INR 1,020 crore, while 29 non-compliant builders face dues of INR 6,900 crore.
The Noida Authority might soon contact the Economic Offences Wing (EOW) regarding developers who have not yet taken advantage of the UP-government's rehabilitation package for stalled residential projects. Out of 57 projects that had failed to pay land dues, 22 have opted for the rehabilitation package. This package provides a two-year relief period, from April 2020 to March 2022, during which developers are exempt from paying interest and penalties for the time work was halted due to the Covid-related lockdown.
The CEO of Noida Authority, Lokesh M, indicated that 29 realtors who have not yet availed themselves of the rehabilitation package owe the Authority approximately INR 6,900 crore in land dues and have over 12,700 flats. He questioned the whereabouts of the funds collected from homebuyers, given that builders have claimed there are no unsold inventories in their projects. Lokesh M mentioned that the Authority plans to write to the Economic Offences Wing (EOW) for guidance on how to handle the situation. The EOW will be asked to investigate and conduct a financial audit of the developers to determine how they may have misallocated money received from homebuyers. If necessary, an FIR will be filed against those who are found to be in default.
The decision to contact the Economic Offences Wing (EOW) was made during a meeting on Tuesday. This move follows recent instructions from Chief Minister Yogi Adityanath, who directed the three industrial authorities to implement disciplinary actions such as sealing vacant or unallocated flats and reclaiming unconstructed or vacant areas against developers who have not complied with the rehabilitation package.
Officials stated that developers who have paid 25% of their recalculated dues after receiving relief for the zero-period but have not completed the required number of flat registrations will be excluded from the next round of relief. This next round is intended for projects affected by the construction ban imposed by the NGT. The Authority will provide additional relief on a case-by-case basis for projects halted by the NGT order, which restricted construction within 10 km of the Okhla Bird Sanctuary.
To date, 22 builders have paid 25% of their recalculated dues, totalling INR 275.7 crore. Additionally, the dues for six other builders have been waived following the extension of zero-period relief. In these 28 projects, a total of 2,558 homebuyers are now eligible to register their flats, with 1,298 of these registrations already completed. The total dues from the 57 defaulter projects amounted to INR 8,273 crore. A rebate of INR 1,866 crore was calculated for the two-year zero period, reducing the total dues to INR 6,373 crore.
The UP-government package applies to only 28 projects, with their cumulative dues totalling approximately INR 1,375 crore. The recalculated dues for these projects currently amount to INR 1,020 crore. The 29 builders who have not taken advantage of the package are not eligible for the rebate, which will revert their total dues to around INR 6,900 crore. Officials noted that among these 29 projects, 13 accepted the government's package but paid only a minimal amount, seven agreed to the package but made no payments, and nine projects did not consent at all.
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