Two months since Amitabh Kant relief package for stalled legacy projects, first registry yet to take place in Noida

Noida Authority officials said that the process of registration of flats will begin March 1, when around 100 flats will be registered in sector-77 (Express Zenith) after setting up registration camps in collaboration with the Sub-registrar office.

Written by Dheeraj Mishra

Noida | Updated: February 29, 2024 09:44 AM IST

3 min read

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Officials said that this consent will pave the way for the registration of a total of 13,639 flats in around two years and 3,412 flats in the next few months.

Two months after the Uttar Pradesh government issued the order to implement the Amitabh Kant committee report on legacy stalled projects, Gautam Buddha Nagar district is yet to register even one flat as part of the said plan. Noida Authority officials said that the process of registration of flats will begin March 1, when around 100 flats will be registered in sector-77 (Express Zenith) after setting up registration camps in collaboration with the Sub-registrar office.

Under the package, the registration of flats can begin only when the builder pays 25% of the outstanding amount (land dues) within 60 days. The scheme provides for a two-year zero period relief, taking into account Covid period, to the builders, among others. Under the zero-period waiver clause, interest and penal interest will not be levied on the builder for two years, and the installments will be shifted beyond it. Using this formula, land dues of the builders will be cut by 20%.

Data available with the Noida Authority shows that out of 57 builders — this does not include projects in NCLT/Courts — roped in under the plan, the developer of 35 projects have given the consent for the scheme. Out of this, only six builders have paid the required 25% of the dues. Data shows that on the basis of these consents, the authority will collect dues of Rs 2,210 crore; out of this, builders have to pay Rs 553 crore in the next 60 days. A total of six builders have paid around Rs 30 crore so far.

Officials said that this consent will pave the way for the registration of a total of 13,639 flats in around two years and 3,412 flats in the next few months. The para 21 (viii) of UP government order, dated 21.12.2023, states that “It must be ensured that the registration of all complete flats and other flats, where buyers are residing after Occupancy Certificate (OC) or without OC, should be completed in three months.”

Out of these 35 projects, M/s Omaxe Buildwell Ltd. owes the highest — Rs 505 crore — to the Authority. Other builders are Greatvalue Projects (Rs 197 crore in dues), Prateek Realtors (Rs 105 crore), Sikka Infrastructure (Rs 208 crore), Pan Realtors (Rs 151 crore), Sunworld Residency (Rs 169 crore), Mahagun Moderne (Rs 77 crore) and others.

Dinesh Gupta, Secretary of CREDAI (Western UP) said the projects stuck in NCLT needs the government’s special attention.

“After a round of talks, the builders are giving consent for the scheme. These are the projects where a significant level of construction has been done and after this package, such projects will take off. However, there are a number of such stalled projects…, they are either in NCLT or developer is not available or the company has gone bankrupt. Such projects need the government’s special attention,” said Gupta.

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Noida Authority CEO Lokesh M did not comment on the same.

Dheeraj Mishra

Dheeraj Mishra is a Principal correspondent with The Indian Express, Business Bureau. He covers India’s two key ministries- Ministry of Railways and Ministry of Road Transport & Highways. He frequently uses the Right to Information (RTI) Act for his stories, which have resulted in many impactful reports. ... Read More

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