With a view to enure faster completion of residential projects and their delivery on time, the Greater Noida Industrial Development Authority (GNIDA) on Monday said that it has ‘defined’ certain clauses in the building bylaws pertaining to construction.
According to the new definition, the builders of group housing plots, who do not start construction within the stipulated period of three years — or whatever time has been mentioned in the lease deed —will be charged a penalty if they have not completed the first phase (15%) of their construction during the stipulated time. Thereafter, penalty will be charged on the builder with every passing year till the project gets completed.
The decision was taken at the board meeting of GNIDA held on Monday. The meeting was chaired by industrial development commissioner Anup Chandra Pandey, who is also the chairperson of GNIDA. Officials were of the view that, till now, there was ambiguity on penalty clauses for construction of group housing plots. “This had tied our hands as far as charging penalties for group housing project was concerned,” said Debashish Panda, CEO, GNIDA.
“After the board’s approval, we will now impose penalties if the builder has failed to construct 15% of the minimum area on allotted plot as per allowed Floor Area Ratio (FAR) within 3 years,” he said. “Thereafter, the allottee will have to pay a penalty every subsequent year for extension of construction. From the fourth year, the allottee will be charged 1% of allotment amount, fifth year 2%, sixth year 3% and so on till the project is completed,” he added.
In order to promote economic growth and generate more revenues for the Authority, the board also gave its approval for a discount to be offered to defaulting allottees of all categories of land use if they agree to clear their dues in one go. “If an allottee pays its entire dues including its future instalments upfront and 100%, he will get a rebate of 5%. If the allottee pays 75% or 50%, a rebate of 3.5% or 2% will be given respectively,” the CEO said. “This will help us recover our dues, improve our cash flows and help homebuyers get their flats, besides giving developers an incentive to clear their outstanding and also get discounts,” he added.