In a decisive move, Noida Authority and Greater Noida Authority have endorsed the Uttar Pradesh government’s directive to implement the recommendations of the Amitabh Kant Committee for real estate projects. This strategic decision, made during the 231st board meeting of Noida Authority and the 133rd board meeting of Greater Noida Industrial Development Authority (GNIDA), aims to expedite home deliveries for buyers and facilitate the completion of pending projects by builders.
Impact on Group Housing Projects
The ripple effect of this decision will be felt across approximately 190 group housing projects in Noida and Greater Noida. These projects currently face challenges with developers owing dues totaling around Rs 32,000 crore, impacting the timely delivery of over one lakh flats to eager buyers, as per official estimates.
Key Provisions for Builders and Buyers
This groundbreaking decision unlocks a range of benefits for both builders and flat buyers. Builders gain access to a ‘zero period’ for project completion, an extended timeframe for due payments, mortgage permissions, purchase of prevailing FAR, and project completion deadline extensions. On the other hand, flat buyers stand to benefit from accelerated registration processes within three months, along with additional perks.
Board Approval and Conditions
The approval for adopting the government order, based on the Amitabh Kant Committee’s recommendations, was granted during the board meetings chaired by Manoj Kumar Singh, the Chairman and UP’s Infrastructure and Industrial Development Commissioner. However, it’s crucial to note that builders must adhere to specified conditions to avail these benefits; any violation will result in disqualification.
Scope and Limitations
The committee’s recommendations apply to group housing projects, including those with Commercial components. Township development projects fall within its purview as well. However, exceptions exist, and the benefits won’t extend to group housing projects in NCLT or court. Besides, projects in the Sports City Project or those incorporated in the Recreation Entertainment Park Scheme have specific exclusions outlined.
Implementation Framework
Recent orders from the Uttar Pradesh government paved the way for adopting the committee’s recommendations, as discussed in the Greater Noida Authority board meeting. Infrastructure and Industrial Development Commissioner Manoj Kumar Singh expressed optimism about the government’s initiative, emphasizing the relief it will bring to buyers and the issuance of occupancy certificates for completed flats.
Relief Measures for Builders
Builders stand to gain considerable relief, with the provision of a ‘zero period’ from April 1, 2020, to March 31, 2022, encompassing the peak COVID-19 pandemic period.
After the ‘zero period,’ builders must deposit 25% of the outstanding amount within 60 days, and they will pay the remaining 75% over three years with simple interest.
Co-Developer Collaboration
A notable inclusion is the permission for co-developers to participate in project completion, sharing responsibility for outstanding authority dues. Additionally, authorities allow partial surrender of unused project land, with the surrendered land’s value offsetting the builder’s outstanding dues.
This initiative aims to provide a comprehensive solution to the challenges faced by the real estate sector in Noida and Greater Noida, fostering a conducive environment for both builders and buyers.