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The Noida Authority is addressing non-compliance among industrial and IT/ITES plot owners by escalating 171 cases to the Uttar Pradesh government. Despite a 2024 extension for functional certificates, over 80 industrial plots and 90 IT/ITES plots remain non-compliant due to overdue payments or incomplete construction. Of 206 industrial plots under review, 80 are non-functional, with 30 facing financial hurdles. Similarly, only 16 of 107 IT/ITES plots meet requirements, prompting the authority to explore resolutions, including installment plans and reinstatements. This move aims to resolve defaults while fostering industrial growth and ensuring timely development across Noida.
The Noida Authority is taking steps to address the issue of defaulting industrial and IT/ITES plot owners by referring their cases to the state government. This decision aims to provide one last opportunity for these plot owners to settle their outstanding dues and obtain functional certificates. The authority's move comes after many plot owners failed to meet the deadline for securing these certificates, despite an extension granted until December 31, 2024. Advertisement
The extension was issued in December 2023, allowing additional time for plots that had not yet been developed, even though over eight years had passed since the lease agreements were signed. The authority's review revealed that more than 80 industrial plots and approximately 90 institutional plots have not complied with the requirements. Many of these plots are either overdue on payments or have not completed construction.
In a recent board meeting held on January 2, the Noida Authority assessed the status of these plots. Of the 206 industrial plots that were expected to be functional by the end of 2024, only 114 have met the necessary criteria. Four plots were canceled due to various liabilities, and eight are currently involved in litigation. Among the remaining plots, 80 are still non-functional, with 30 having overdue payments. Discussions with 21 plot owners indicated that financial difficulties are a common issue, prompting requests for installment payment plans.
The situation is similar in the IT/ITES sector, where 107 plots were evaluated. Only 16 of these plots have received functional certificates, while 91 still need to meet the required standards. Initially, 29 plots were canceled due to insufficient construction progress; however, 18 of these were reinstated following appeals to the state government. The remaining 11 plots have not had their status resolved, as no restoration applications were submitted. Notably, 78 plots exceeded 50% of their permissible Floor Area Ratio (FAR) but remain non-functional. Out of these, 38 have been granted an extension until December 2024, while 24 have neither received an extension nor achieved functionality.
This situation highlights the ongoing challenges faced by industrial and IT/ITES plot owners in Noida. The Noida Authority's decision to involve the state government may provide a pathway for resolution, but it also underscores the need for plot owners to address their financial and construction challenges. As the deadline approaches, many owners are under pressure to comply with the requirements to avoid further penalties or cancellations.
The Noida Authority's proactive approach aims to streamline the process and encourage compliance, which could ultimately benefit the local economy by promoting industrial growth and attracting more businesses to the region. As the authority navigates these complex cases, it remains committed to supporting plot owners while ensuring that the development of Noida continues to progress in a timely manner.
In conclusion, the Noida Authority's referral of defaulting plots to the state government marks a significant step in addressing long-standing issues in the industrial sector. The outcome of this initiative will be closely watched by stakeholders, as it could set a precedent for future policy decisions and the management of industrial and IT/ITES developments in Noida.
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