Noida Authority recently sealed Omaxe Buildhome's Grand Omaxe housing society in Sector 93B due to non-payment of INR 457.8 crore in dues. The developer failed to pay 25% of the recalculated dues, approximately INR 114.4 crore, even after receiving relief under the Covid-19 relief package. Noida Authority CEO Lokesh M stated that the developer had ignored multiple notices before the property was sealed. The Authority also plans to seal unsold flats and vacant land at other projects. Of 57 defaulting projects, only 22 have accepted the rehabilitation package, with 29 developers owing around INR 6,900 crore.
In a significant development, the Noida Authority has sealed the Grand Omaxe housing society in Sector 93B on Friday due to the developer, Omaxe Buildhome, failing to pay overdue dues amounting to INR 457.8 crore. The decision came after the developer did not deposit the required 25% of recalculated dues, which totals approximately INR 114.4 crore. This payment was expected even after Omaxe Buildhome opted for a relief package aimed at mitigating the financial impact of the COVID-19 pandemic. Noida Authority CEO Lokesh M stated that the developer was repeatedly notified about the outstanding payment but did not comply. Consequently, a team from the Authority visited the site and sealed the property last week.
The Authority had announced its plan to seal unsold flats and vacant land at three major projects-Grand Omaxe, Antriksh Golf View in Sector 78, and Matrott in Sector 76-due to non-payment of dues earlier this month. This action follows the Uttar Pradesh government's relief package, which was introduced based on recommendations from the Amitabh Kant committee. The package provides a two-year zero-interest period from April 2020 to March 2022 for developers, exempting them from penalties due to pandemic-related disruptions.
Out of 57 projects in Noida with payment issues, only 22 have accepted the relief package. Meanwhile, 29 developers, who owe around INR 6,900 crore collectively and have more than 12,700 pending flats, have not yet taken up the offer. Reports suggest that the Noida Authority is considering filing complaints with the Economic Offences Wing (EOW) of the police, alleging that some developers might have misused funds received from homebuyers.
In a related move, the Greater Noida Authority urged developers to clear their dues and accelerate the registration process for their projects in a meeting held last week. Additional CEO Saumya Srivastava reported that 13 out of 98 defaulter builders have paid their outstanding amounts, and 58 builders have deposited 25% of their dues. The Authority has granted registration permission for 9,558 flats across 71 projects. Builders have six months from the date of permission to complete the registration without incurring a late fee. Failure to meet this requirement will result in the cancellation of their land allotments. Greater Noida Authority is also planning to request a forensic audit of defaulter projects by the EOW to further investigate the financial discrepancies
In conclusion, The Noida Authority has sealed the Grand Omaxe housing society due to Omaxe Buildhome's failure to pay INR 457.8 crore in dues, including an overdue 25% recalculated amount of INR 114.4 crore. Despite relief measures following the COVID-19 pandemic, the developer ignored repeated notifications, prompting the Authority's action. This situation reflects a broader issue, with 57 projects in default and only 22 accepting a government relief package, leading to potential legal actions against non-compliant developers. Meanwhile, the Greater Noida Authority is urging builders to settle outstanding payments and considering a forensic audit to investigate financial discrepancies.
Advertisement
Facebook
Whatsapp
