Following the visit by a high level state cabinet committee of the Noida and Greater Noida areas in the last month, to try and understand the bottlenecks in the real estate industry of the region, the UP CM Yogi Adityanath had instructed the Noida and Greater Noida authorities to ensure delivery of 50,000 flats in three months’ time.
Working to achieve the target set by the CM, the Noida Authority on Tuesday came up with a new scheme to facilitate delivery of residential projects on time. There are several projects that have almost all of their flats ready but they are not being offered for possession because the builders have not paid the land dues to the Noida Authority. Consequently, they are unable to get Occupancy Certificates (OC).
As per the new scheme available for a period of two months, builders who have not paid their land dues can now pay 10-15% of the total land dues and get the OC for their housing projects. A builder with a dues more than Rs 500 cr will need to pay 10% and those with dues amount less than Rs 500 cr can deposit 15% of the total outstanding amount and get the OC.
The move is expected to benefit more than 78,000 homebuyers who have not been offered possession by the builders because the latter have not been able to obtain the OC failing to clear their land dues. Once the land dues are paid, the Noida Authority issues no dues certificate (NDC) to builders making them eligible for OC. Without OC, a builder cannot offer possession and execute registry. There are some 94 stuck housing projects in Noida that stand to benefit if the new scheme rolled out yesterday works out.
“In order to ensure possession, the chairman has decided to re-introduce its reschedulement policy so that the builders can pay a part of their dues and get the no dues certificate (NDC). After getting the NDC, the builder can get the occupancy certificate required to give start giving possession,” said Santosh Kumar, officer-on-special-duty, Noida Authority.
In all, an amount around Rs 25,000 cr of the Noida Authority is pending with the builders of all the projects, out of which Rs 11,000 cr pertain to the group housing projects.