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Noida Authority launches group housing plot scheme

Rishabh Chamoli | 2022-09-12

The Noida Authority has launched a new group housing plot scheme. A total of nine plots located in Sectors 146 and 151 would be auctioned under this scheme .
To make the process smoother, the Authority has made several amendments in the land allotment process.

Noida Authority has put on block nine plots under a new group housing scheme. Six plots measuring 18,000 to 20,000 sq m will be allotted in Sector 151. The remaining three are located in Sector 146, and their size ranges from 7,800 to 94,000 sq m.

Changes to the previous policy
Drawing from past lessons, the Authority has made several changes to its allotment process. Earlier developers were allowed to pay just 10 percent of the total land cast at the time of allotment, and the rest of the payment was allowed in several instalments.
This has led to severe losses for the Authority, as it is owed Rs 20,000 Cr as per recent estimates by various developers across Noida.
Now, under the new rules, the builder would need to deposit the entire amount within 90 days. Also, it will be compulsory for all members of the buyer group to maintain 100 percent shareholding until the occupancy process is completed.
This is said to be done to discourage fly by night operators, who might manipulate the process.

Escrow account
While earlier escrow accounts were not popular with building developments in Noida, the Authority has now mandated that separate escrow accounts be opened for the project.
Details of the escrow account, along with names of the buyers of the apartments, their allotted house numbers etc., would also need to be submitted to the Authority every quarter.

Sub-division of plots
Clarifying its earlier policy, the Noida Authority has clearly stated that sub division or amalgamation of plots would not be allowed.

With the new rules, the Noida Authority has taken remedial steps to protect the interests of homebuyers.
At present, thousands of buyers are awaiting delivery of their apartments across Noida.
These new rules will also boost the revenue of the Authority as it will be paid for on time.