The Noida Authority intends to alter its land distribution policy for group housing societies, making it essential for developers to pay the whole lease cost in advance. Developers were formerly paid in stages.
Developers in the city, which has experienced an increase in incomplete projects and growing dues owed by builders, would not be allocated property unless they pay the authority in full, authorities said on Sunday. The suggestion will most likely be submitted at the authority’s next board meeting. The date is yet to be determined. Under the previous approach, developers had to pay just 40% of the whole leasing price up front, with the remainder paid in instalments over time.
Once the decision is approval is obtained and enforced, builders will be unable to abandon projects or transfer cash because they have already committed a significant sum as part of the authority’s dues, according to officials from the planning office.
The ruling will assist homeowners in better control of their apartments on schedule. “They don’t have to strain to complete the registration,” an official stated on requested anonymity. According to the source, the action will relieve the city of the load of litigation originating from projects in bankruptcy processes.
“The land assignment strategy for industrial and residential plots has already been altered by the authorities. It is now considering changing its policy for the group housing segment as well, and a suggestion to allocate land after accepting the complete fee rather than in instalments would be reviewed at the next board meeting “CEO Ritu Maheshwari of the Noida Authority stated. The CEO was alluding to the authority’s reforms this year. Builders who have been assigned industrial plots must additionally deposit the full amount at the time of allotment. They had to pay the money in instalments previously. Builders now have a year rather than three years to deposit the entire cost for residential sites.
On May 19, It was reported that the authority was contemplating issuing a motion requiring developers to pay the entire sum for land leasing. The change in stance was precipitated by the Supreme Court’s decision last week to grant the Authority functional creditor status rather than financial creditor status, removing some of its rights in the settlement agreement following insolvency. Developers of housing societies currently owe the authorities Rs 20,000 crore in back taxes. More than 50,000 homebuyers have failed to register their apartments.
A study released last year by the Comptroller and Auditor General of India (CAG) exposed gaps in the city’s policies, highlighting how builders took control of the city’s loosened land acquisition criteria. From 2005 to 2018, Noida allocated 24 plans for 71.03 lakh sqm of land to developers for care facility complexes. The fees for these programmes currently total Rs 20,000 crore.
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