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Noida Authority has decided to continue extending benefits under the Uttar Pradesh government's rehabilitation policy to real estate developers who have not deposited the mandatory 25 per cent of recalculated land dues. The decision reverses an earlier proposal to withdraw concessions from such builders and instead allows their cases to be examined individually by the Authority's board. The policy applies to 57 stalled projects, where total collections have reached about INR 872 crore, including INR 561 crore paid as upfront dues. Flat registrations, however, remain slower than expected.
Noida Authority has opted to keep the state government's rehabilitation policy in force for stalled real estate projects, including those where developers have not yet paid the required 25 per cent of recalculated outstanding land dues. The Authority's board decided against withdrawing the policy benefits from non-compliant builders, choosing instead to review such cases individually before taking a final call. Advertisement
The rehabilitation framework was introduced by the Uttar Pradesh government in December 2023 to address long-pending delays in housing projects and facilitate completion, possession, and registration for homebuyers. It allows developers to recalculate dues after factoring in relief periods and offers structured payment timelines, subject to an upfront deposit of 25 per cent.
A total of 57 projects are covered under the policy, excluding projects by Amrapali and Unitech, as well as cases currently before the National Company Law Tribunal. Among these, 36 developers have deposited the full 25 per cent amount, while 11 have made partial payments. Four developers have agreed to the terms but have not paid yet, and six have neither consented nor made any payment.
According to Authority data, around INR 561 crore has been collected as part of the 25 per cent upfront requirement. Overall collections, including instalments, have reached approximately INR 872 crore so far. These figures reflect gradual progress, though a significant portion of dues remains outstanding.
The Authority clarified that developers who have not complied with the payment condition will not automatically lose policy benefits. Instead, their cases will be placed before the board on a case-by-case basis, and any relaxation or extension will require specific approval. This approach is intended to balance revenue recovery with the objective of reviving stalled developments.
Several projects remain entangled in litigation before courts, the NCLT, or government revision authorities. In such cases, the rehabilitation policy will apply only if disputes are withdrawn or settled and dues are recalculated after accounting for reliefs such as COVID-19 zero-period benefits and National Green Tribunal construction bans.
On the homebuyer front, the Authority has allowed registration for 6,855 flats out of nearly 21,034 unregistered units across these projects. However, only about 4,134 registrations have been completed, indicating a response rate of around 60 per cent. Officials have pointed to limited buyer participation as a key reason for the slower pace of registrations.
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