Newsdetail

Noida Authority Schemes to Coax Developers to Pay Up Find Few Takers

By Rishabh Chamoli | 2023-03-02

The Authority announced a reschedulement policy, which developers could avail of between January 1 to March 31. However, just six realtors showed interest in rescheduling dues, and only two applied.

Two schemes available to realtors failed to draw the expected response, taking neither the Noida Authority nor developers any closer to resolving the deadlock that has squeezed a vital revenue channel for the government, suspended thousands of registries and raised the spectre of bankruptcy for developers.

In Dec 2022, the Noida Authority announced a reschedulement policy, which developers could avail of between January 1 to March 31. It enabled realtors to restructure their total dues payments by paying up to 20% upfront and agreeing to tranche payments within a 2 year window. It also allowed developers to get flat registries equivalent to the paid dues.

However, only six realtors have shown interest in rescheduling dues, and just two have applied.

Last year, the Noida Authority also issued notices for dues to 56 builders amounting to Rs 9,000 crore. But only around Rs 350 crore were collected.

The Noida and Greater Noida Authority collectively have around Rs 40,000 crore in dues that they haven’t been able to recover.

In 2019, the Noida Authority approved another scheme, a flat wise registry plan to coax developers into paying their dues. It allowed developers and builders to obtain flat wise occupancy certificates by clearing proportionate dues instead of waiting for the entire project to complete.

But only 19 builders filed applications for this scheme, and only 6 deposited money, clearing registries of 180 flats.