The Noida Authority has approved two projects under the Uttar Pradesh government's co-development policy to address stalled real estate developments. Nimbus Projects will oversee Sunworld Residency in Sector 168, and Theme County will manage a project in Sector 115, benefiting approximately 1,000 homebuyers. The initiative follows the Hawelia Group's takeover of Shree Radha Sky Garden in Greater Noida. The new developers are required to settle dues and secure funding to complete the projects. With around 190,000 housing units worth INR 1 lakh crore currently stalled in the region, this policy aims to revitalize the market.
The Noida Authority has granted approval for two projects as part of the Uttar Pradesh government's co-development policy aimed at reviving stalled real estate projects. Nimbus Projects will now oversee the Sunworld Residency project in Sector 168, while Theme County will manage another development in Sector 115, benefiting around 1,000 homebuyers.
The initial project under this policy involves the Hawelia Group, which has taken control of the 22-acre Shree Radha Sky Garden in Greater Noida, a partially completed endeavor. As per the new arrangement, the incoming developer must settle outstanding dues with the authority and secure funding for both completed and uncompleted units within the building. These projects are financially stable, and the infusion of funds from the new developer is expected to expedite completion, much to the advantage of homebuyers.
According to the Confederation of Real Estate Developers' Associations of India (CREDAI), there are approximately 190,000 housing units worth INR 1 lakh crore in Noida, Greater Noida, and Ghaziabad. In Greater Noida alone, around 36 real estate projects are currently embroiled in insolvency proceedings. The new developers are also tasked with resolving RERA cases brought forth by buyers.
It is estimated that INR 40,000 crore is owed to the authorities of Noida, Greater Noida, and the Yamuna Expressway, which includes premiums, interests, and penalties associated with allocated plots where various real estate projects are at different stages of development.
Previously, other builders had only engaged in projects through contractual or debt management frameworks, without assuming any financial, legal, or authority-related responsibilities. The legacy of stalled projects has largely been recognized in the Noida and Greater Noida areas over the last 7 to 10 years. Until now, the resolution of these projects has primarily been handled through the National Company Law Tribunal (NCLT), under Section 8 of the RERA Act, 2016, or other legal avenues.
The co-development policy allows the new developer to secure debt based on their credit ratings and net worth to achieve financial closure for these stalled projects, a significant advantage considering the previous promoters' defaults and lack of sufficient credit ratings to finance project completion.
In conclusion, the approval of these projects marks a significant step towards alleviating the crisis faced by homebuyers in Noida and Greater Noida, where numerous real estate ventures have stalled for years. By enabling capable developers to take over these projects, the Noida Authority is facilitating a more efficient resolution process. The co-development policy not only provides financial avenues for project completion but also aims to restore buyer confidence in the real estate market. As new developers move forward, the hope is that this initiative will lead to the successful delivery of homes and a revitalized housing sector in the region.
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