In a significant breakthrough for the real estate sector in Noida and Greater Noida, the authorities have granted approval to the recommendations of a committee chaired by former NITI Aayog chairman and India’s G20 Sherpa, Amitabh Kant. This pivotal decision opens the door for the resumption of over 200,000 stalled flats in the region, providing much-needed relief to both developers and homebuyers.
During their board meeting on Tuesday, both the Noida and Greater Noida authorities gave their final approval to the committee’s recommendations. The approved measures offer a lifeline to 117 projects, benefiting approximately 75,000 buyers in Greater Noida alone, as highlighted by an authority spokesperson.
Key Highlights of the Approved Proposal:
- Zero Period and Extended Payment Time:
Builders will now have the opportunity to take advantage of a zero period, along with more time for the payment of dues. This strategic move aims to alleviate financial burdens on developers and facilitate the completion of stalled projects. - No Charges to Homebuyers:
The policy prohibits builders opting for the benefits from charging any additional amount to the buyers. This ensures that the advantages provided by the government directly reach the homebuyers without any additional financial burden. - Recalculation of Dues:
An independent chartered accountant or third party will recalculate the dues of the builder. This step adds transparency to the process and ensures a fair assessment of financial obligations. - Extension Period without Charges:
Builders will be granted a three-year extension without incurring any charges. This extension provides developers with a reasonable timeframe to navigate through challenges and complete their projects successfully. - Dues Payment Plan:
Once a developer agrees to the relief package, they are required to submit 25% of the dues. The authority will then grant permission to mortgage, enabling the builder to raise funds necessary for project completion. The payment plan mandates clearing dues of less than Rs 100 crore within a year, and dues ranging between Rs 100 crore and Rs 500 crore have a two-year payment timeline. For dues exceeding Rs 500 crore, builders will have a three-year window for payment. - Exclusions from Relief Package:
The authority clarified that the relief package will not be applicable to projects under the sports city scheme, as well as commercial, institutional, and industrial projects.
Reference: “https://realty.economictimes.indiatimes.com/news/residential/noida-greater-noida-authority-paves-way-to-restart-stuck-housing-projects/106300692”