Noida and Greater Noida authorities have approved recommendations by a committee led by former NITI Aayog chairman Amitabh Kant, opening the door for the revival of 200,000 stalled residential units. The decision, with benefits like a zero period and extended payment timelines, aims to aid 117 projects and 75,000 buyers in Greater Noida. Notably, builders opting for benefits cannot impose extra charges on buyers. The relief package includes an independent assessment of dues and a three-year extension for project completion. Dues settlement timelines are outlined based on amounts. Exclusions apply to sports city and certain development categories, ensuring momentum in real estate while protecting stakeholders.
Noida and Greater Noida authorities have greenlit the recommendations proposed by a committee chaired by the former NITI Aayog chairman and India's G20 Sherpa, Amitabh Kant. This significant decision paves the way for the revival of over 200,000 stalled residential units in the region. In a pivotal board meeting held last week, both authorities granted final approval, thereby enabling builders to capitalize on various benefits such as the zero period, extended timelines for payment of dues, and the authority to mortgage properties, among other advantages.
The spokesperson for the authorities emphasized the positive impact of this decision, asserting that it would particularly benefit 117 projects and approximately 75,000 buyers in Greater Noida alone. One noteworthy provision in the approved proposal stipulates that builders availing themselves of these policies cannot impose any additional charges on the homebuyer. This ensures that the benefits extended by the government directly reach the end consumers.
Under the approved framework, an impartial chartered accountant or third party will reassess the builder's outstanding dues. Moreover, no fees will be imposed for granting a three-year extension to the builder's timeline for project completion. Once a developer opts for the relief package, they must remit 25% of the outstanding dues, following which the authority will grant permission for mortgage, enabling the builder to secure funds necessary for project completion.
Clear guidelines for the timely settlement of dues have been established based on the outstanding amount. If the dues are below Rs 100 crore, they must be settled within a year. For amounts ranging between Rs 100 crore and Rs 500 crore, builders are given a two-year timeframe for settlement. Dues exceeding Rs 500 crore are granted a three-year payment plan.
However, it's important to note that the relief package does not extend to projects falling under the sports city scheme or those categorized as commercial, institutional, and industrial developments, as stipulated by the authorities. This strategic move aims to inject momentum into the real estate sector while safeguarding the interests of both builders and homebuyers.
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