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Noida Developers to pay hefty fine for delaying project work

By Rishabh Chamoli | 2022-10-26

Are you troubled with failed promises of developers in completing work in your residential society? Homebuyers can rejoice as the Noida Authority has proposed to introduce a new policy to penalise the developers who fail to comply with building laws and delay in completing the project work.

The Noida Authority is planning to introduce a new policy to bring respite to homebuyers ordeal in case of delay in completing project work. The move is aimed at making developers accountable to deal with pending flat registrations. This will include penalising the builders with heavy fines and penalties to the tune of Rs 5 to 50 lakh. The new policy will be discussed in the upcoming board meeting.

What is the existing policy to deal with defaulter builders?
The Authority has been receiving several complaints pertaining to unfinished projects, lack of amenities, and delays in registrations. Currently, the Noida Authority seals the sales office or vacant units of the developer, imposes interest on due amount, or cancels the Occupancy Certificate (OC) issued to the developer. All these actions, however, have a negative impact on buyers than developers.

Once the new policy is implemented, the Noida Authority will become the first such body in the State to frame regulations for builders, instead of the current homebuyer oriented rules.

What does the new policy change entail?
Under the new policy, there would be provisions to impose hefty fines on the developers, falling in the range of Rs 5 to Rs 50 lakh for not completing the work related to Sewage Treatment Plant (STP), clubhouse or other high rise facilities. Amidst rising complaints against builders, such a heavy financial penalty will likely act as a deterrent.

Ishtiyaq Ahmed, Chief Architect and Town Planner, Noida Authority, said, The Authority will take strict action against those builders who, despite getting the group housing layout passed by the Authority, do not provide facilities to buyers and get construction done against the approved map.

When will the new policy be implemented?
A committee of officials from the planning, law and group housing department has been assigned with the task to prepare the policy draft. In the next board meeting, the Authority intends to bring a structural audit policy for high rise projects.