For buyers of stalled housing projects in Noida and Greater Noida, registry to begin in 3 months

Officials said with this decision, builders will be able to avail of the zero period benefit for completion of projects, time to deposit land dues, mortgage permission, purchase of prevailing FAR, and extension of time for project completion, among others.

Under the zero-period waiver, interest and penal interest will not be levied on the builder for a specified period of two years, and the installments will be shifted beyond it.

Flat buyers will get the benefit of registration in three months. However, builders will not be able to get benefits if the conditions are violated.

The Kant committee, constituted on March 31 by the Union Ministry of Housing and Urban Development, had given recommendations to provide solutions for stalled projects, several of which have been accepted with amendments by the UP government.

The zero-period relief will be given from April 1, 2020, to March 31, 2022. In the case of NGT’s order to provide zero-period relief from August 14, 2013, to August 19, 2015, for a 10-km area of Okhla Bird Sanctuary, it will be considered on a case-to-case basis.

Officials said after availing of the zero-period relief, the builder will have to deposit 25% of the outstanding amount (land dues) within 60 days. The remaining 75% will have to be deposited with simple interest in three years.

Now the co-developer will be able to get permission to complete the project. Both will be responsible for paying the outstanding amount to the authority.

Apart from this, the industrial development authorities will adjust the amount already paid for the surrendered land with dues of the builder. The authority may cancel the allotment of a partial portion if dues are not paid. The outstanding amount will be verified by an independent CA. No additional charges will be levied on flat buyers benefiting from this policy.

The time to complete the stalled project will be a maximum of three years without an extension fee and pending dues have to be paid within three years.

“After depositing 25% of the net land dues, the registry, plan approval, extension, etc. will begin immediately. Dues up to Rs 100 crore will be paid in a maximum of one year, dues up to Rs 500 crore will be paid in two years, and dues above Rs 500 crore will be paid in 3 years. The concession given to the developer and payment of net dues to the authority and the registry of houses to the flat buyer will be linked to each other,” read the government order.

According to the estimates of the Indian Banks Association, there are about 4.12 lakh houses across the country that have not been completed due to the poor financial condition of the developers. Out of these, about 2.40 lakh houses are in the NCR.