Noida, Greater Noida Authorities Embrace Reforms for Real Estate Projects

In a significant move aimed at helping homebuyers and facilitating the completion of stalled real estate projects, the boards of Noida Authority and Greater Noida Authority have adopted the Uttar Pradesh government's order to implement the recommendations of the Amitabh Kant Committee on real estate projects.

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Impact on Housing Projects and Buyers

The decision will have a substantial impact on approximately 190 group housing projects across Noida and Greater Noida. These projects are grappling with pending dues amounting to around Rs 32,000 crore, while over one lakh flats remain undelivered to buyers, as per official estimates.

With the adoption of the Amitabh Kant Committee recommendations, builders will gain access to various benefits, including a zero period for project completion, an extension of time for depositing dues, mortgage permission, the purchase of prevailing FAR, and an extension of time for project completion. Homebuyers, on the other hand, will benefit from faster registration of their properties within three months, among other advantages.

Key Decisions and Implementation

The decision was made during the 231st board meeting of the Noida Authority and the 133rd board meeting of the Greater Noida Industrial Development Authority (GNIDA), both chaired by their chairman and Uttar Pradesh's Infrastructure and Industrial Development Commissioner, Manoj Kumar Singh. The meetings were attended by Greater Noida Authority CEO NG Ravi Kumar and Noida Authority CEO Lokesh M as board members.

In the 133rd board meeting, GNIDA specifically approved the adoption of the government order to implement the recommendations of the Amitabh Kant Committee. However, it was emphasized that builders will not be eligible for these benefits if they violate the stipulated conditions.

Scope and Exclusions

The recommendations of the Amitabh Kant Committee will be applicable to group housing projects. If a group housing project includes a commercial component, the recommendations will apply to that part as well. Township development projects also fall within the scope of these recommendations.

However, certain exclusions have been outlined. Group housing projects that are currently under the National Company Law Tribunal (NCLT) or involved in court cases can only avail the benefits of this package if the cases are withdrawn. Additionally, these recommendations will not apply to group housing projects within the Sports City Project or those included in the Recreation Entertainment Park Scheme.

Furthermore, the recommendations are not applicable to commercial, institutional, and industrial projects.

Relief for Homebuyers and Project Completion

The Infrastructure and Industrial Development Commissioner, Manoj Kumar Singh, expressed optimism about the positive impact of these initiatives on homebuyers. He stated that the government's efforts will provide significant relief to buyers, enabling them to obtain occupancy certificates (OCs) and completion certificates (CCs) for their constructed flats. Homeowners will also be able to expedite the registration of their properties and secure ownership rights.

GNIDA has announced several reliefs to facilitate the completion of incomplete projects. Builders will be granted a zero period from April 1, 2020, to March 31, 2022, which coincides with the peak of the COVID-19 pandemic. During this period, no interest will be charged on outstanding dues. Following the zero period, builders will be required to deposit 25% of the outstanding amount within 60 days. The remaining 75% must be deposited with simple interest over three years.

Another significant development is the allowance for co-developers to obtain permission to complete projects. In such cases, both the original builder and the co-developer will be jointly responsible for settling the outstanding dues with the authorities. Additionally, partial surrender of unused land within the project will be permitted. The authorities will adjust the amount already paid for the surrendered land against the builder's dues.

The adoption of the Amitabh Kant Committee recommendations by Noida and Greater Noida Authorities marks a significant step towards addressing the challenges faced by homebuyers and stalled real estate projects in the region. These measures aim to expedite project completion, provide relief to homebuyers, and boost the overall real estate sector.