At least 30 real estate developers have agreed to clear their dues under the Uttar Pradesh government's real estate policy 2023, as more than 6,500 flats may be registered in Greater Noida soon. , real estate investors are looking to put their money into: You should know about the real estate market.
Under this policy, real estate agents of 30 stalled housing projects in Greater Noida will be given a total INRIt will invest $350 million and obtain permission to create a registry of 6,500 apartments in each project.
“At least 30 Greater Noida developers have agreed and signed an agreement to pay 25% of the dues to be eligible for registration of completed units in stalled housing projects. We are asking all real estate agents to take advantage of this scheme and get permission to register so that they do not have to suffer any further,'' said Saumya Srivastava, Additional Chief Executive Officer, Greater Noida Authority.
As developers from Greater Noida accepted the government's nod in Noida, 13 real estate agents also accepted a move to clear dues and get registration permissions ahead of schedule.
What is the policy of the UP government?
Under the provisions of the December 21, 2023 policy, real estate developers will be entitled to exemption from fines for two years (during the COVID-19 pandemic) as well as during the period when construction is suspended by court order.
According to officials, these 30 developers have agreed to pay 25% of the total dues to qualify their apartments for registration, after deducting penalties, and another 30 real estate agents have agreed to pay the dues. He added that he was likely to agree.
What is the total amount owed by the developer to the authorities?
There are 57 stalled housing projects (32,000 units) in Noida and 96 stalled projects (75,000 units) in Greater Noida that are eligible to benefit from this policy.
According to estimates, real estate agents in Noida have the following debts: INR8,000 crores, Greater Noida real estate agent defaults on payment INR550 billion dues for stalled projects.
Under this policy, authorities can also cancel the allocation of defaulting developers.
Under the policy, the authority has the power to cancel the assignments of delinquent real estate agents who are unwilling to pay their dues and take over uncompleted projects. The policy also empowers the authorities to blacklist defaulting developers for five years within the jurisdiction of three industrial bodies – Noida, Greater Noida and Yamuna Expressway.
At least 96 projects in Greater Noida that are eligible for the 2023 policy are stalled, including 75,000 units, officials said.
Also read: Real estate budget 2024: infrastructure, focus on new housing projects for the middle class
The procedure is expected to be completed in about 1 to 2 months.
Once the process is completed, authorities will issue the necessary permits and the process will be completed in one to two months, officials said.
The authorities have set up three committees, each chaired by a deputy general manager, to pursue all remaining real estate agents, clear their dues, and obtain registration permits.
noida registry
In Noida, only 13 out of 57 real estate developers of stalled housing projects have come forward to pay their dues by availing interest waiver under the new policy.
Also read: Noida Authority gives ultimatum to real estate agents: Pay dues after exemption or take legal action
The Noida Authority has issued an ultimatum to real estate agents to either pay land usage fees as per the new real estate policy on December 21, 2023, or be ready to take legal action.
The move comes as only 13 out of 57 real estate agents for stalled housing projects have so far come forward to pay their dues after taking advantage of interest waiver under the new policy. .
Seven of these 13 have already paid their dues, and the rest are in the process of agreeing and making payments for permission to register.
Developers who have accepted government nods in Noida include 13 housing projects that failed to get registration permission.
Why are developers in Greater Noida coming forward to clear their dues but not in Noida?
Developers in Greater Noida are coming in droves to pay their dues as the amount they have to pay to the authority will be significantly reduced under the exemption policy. In Noida, major development companies like Supertech Group, ATS, Prateek Group and Gardenia Glory have paid their dues. INR10 billion.
Also read: UP-Rera asks banks to finance delayed real estate projects
“These developers are also demanding further exemptions before they decide to pay their dues,” a Noida authority official said.
However, in Greater Noida, more and more developers are coming forward to clear their dues as their dues are below. INRGreater Noida Authority officials said the amount was $100 million.
Also read: Could India's real estate market face a crisis like China's Evergrande?
Want to invest in Noida or Greater Noida? Here's what you need to know
According to Prashant Thakur, Regional Director and Head of Research, ANAROCK Group, the fact that more developers are agreeing to settle their dues is an indication of project progress and potentially faster project completion. Masu. Nevertheless, investors should exercise caution and thoroughly investigate the developer's reputation, project approvals, track record of timely completion, and financial stability before investing. “Always perform thorough due diligence and stick to reputable, well-organized developers,” he said.
If there are reasons for uncertainty, it makes sense to seek professional guidance from a qualified real estate advisor to navigate the complexities of the market and make informed decisions. An organized consulting firm can provide genuine information. He said smaller brokers who aren't bound by best practices tend to provide misleading information just to close a sale.
He added that it is important to monitor its progress and developers' compliance to get a clearer picture regarding the policy's effectiveness in facilitating project completion.
