Thousands of homebuyers are in limbo as a result of the halted developments. Although the Noida Authority has successfully completed the registers for 3,724 flats, officials said that 5,758 more units are still prohibited since developers have not paid their outstanding debts.
Under the Uttar Pradesh government’s “Stalled Legacy Housing Projects” policy, the Noida Authority has made the decision to stop offering interest waivers and concessions to developers who have fallen behind on their payment obligations.
Last week, at a board meeting, the Authority made the decision
Officials claim that the decision comes after several cases in which builders took advantage of relaxations but neglected to pay all outstanding debts, delaying the resuscitation of the project and the arrival of thousands of purchasers.
The Amitabh Kant Committee’s recommendations to restart legacy-stalled projects led to the introduction of the scheme in December 2022. It required builders to pay 25% of their total outstanding debts up front and the remaining balance over three years, with the Authority waiving a portion of the accrued interest and penalties.
Officials said that some developers, meanwhile, exploited the incentives without making significant progress on payments.
Thirteen of the 58 promoters under the plan have made partial payments, and thirty-five have paid the first twenty-five percent, according to the Authority. Ten made no dues payments at all.
“This cannot go on since these kinds of activities also affect homeowners who have been waiting a long time for their houses.” In accordance with the policy, the Authority has decided to stop waiving interest for developers who have not made further scheduled payments. During the discussion, a top Noida Authority official told Moneycontrol, “This new focus on defaulter-builders speaks towards a stronger recovery approach.”
According to another source, the state’s resurrection strategy allowed developers to resume projects, but some have abused this opportunity by taking advantage of interest exemptions without adhering to repayment plans. According to the official, those defaulters will now be subject to recovery procedures and criminal interest.
Pending registries
Thousands more homebuyers are in limbo as a result of these postponed projects combined. Although the Noida Authority has successfully completed the registers for 3,724 flats, officials said that 5,758 more units are still prohibited since developers have not paid their outstanding debts.
Families who have already waited years for delivery face even more uncertainty as purchasers who have paid for their houses are unable to receive formal ownership certificates or take possession until those payments are fulfilled, authorities said.
Nearly 40% of Noida-Greater Noida’s halted inventory is still undergoing revival or restructuring, per statistics from the Uttar Pradesh Real Estate Regulatory Authority, or UPRERA.
What comes next?
To ascertain the precise amount of outstanding dues and if on-site work has commenced, the Authority is expected to begin a compliance assessment of all developers registered under the program.
According to officials, noncompliant projects would be subject to land recovery procedures, the reinstatement of punitive interest, and the revocation of allotments.
To finalize the list of developers who have defaulted, officials said a new review meeting is probably going to take place later this month. There will likely be notices soon as well.
According to real estate specialists, if the land allocation is canceled because of unpaid debts, homeowners may have to wait longer for their houses, which would cause anxiety. They said that it serves as a message to defaulting developers that the days of simple extensions are coming to an end.