Noida Builders to be Screened for Second Waiver under Reschedulement Policy
In a positive move for real estate developers in Noida, those who have applied for the state government’s reschedulement policy for legacy dues and made the upfront 25% down payment will now be considered for a second waiver. This second waiver, which is conditional as per the policy, could further reduce their dues. The first waiver was already granted to developers who applied for the scheme, exempting them from penalties and interest for the two years of the Covid pandemic. This initial waiver provided significant relief to builders, especially those with dues amounting to thousands of crores.
Relief for Developers During Eco-Sensitive Zone Demarcation
The potential second waiver seeks to alleviate construction-related burdens for another two-year period when the National Green Tribunal (NGT) had halted construction within a 10km radius to establish the eco-sensitive zone around the Okhla Bird Sanctuary. Out of the 57 builders in Noida who agreed to the policy’s terms, approximately 10-11 are expected to be eligible for this additional relief. The period of applicability for this waiver is from August 14, 2013, to August 19, 2015.
Assessment and Individual Handling of Applications
According to Noida Authority CEO Lokesh M, an ongoing assessment is currently being conducted to determine the eligibility of builders for the second waiver. He emphasized that each developer’s application will be individually reviewed. This process follows the rehabilitation policy announced by the Uttar Pradesh government in December of last year, which was formulated based on the recommendations made by the Amitabh Kant committee aimed at reviving stalled projects. The policy specifies that the zero-period benefit will be granted on a case-by-case basis, in accordance with the Noida Authority’s policies and considering other project-specific circumstances.
Positive Response From Developers’ Association
The Confederation of Real Estate Developers’ Associations of India (Credai) has expressed optimism about this new development, underlining that realtors have long been requesting for such measures. Dinesh Gupta, the Credai secretary in western Uttar Pradesh, believes that this second waiver will expedite the settlement of builders’ dues and subsequently accelerate the registration process for homebuyers. Addressing the issue of delayed projects, Gupta also highlighted the need for the Authority to address concerns regarding time extension charges. He further noted that construction halts due to reasons beyond developers’ control, such as farmer protests and environmental restrictions during winter, result in increased costs and longer timeframes for project completion. His sentiments were echoed by Manoj Gaur, the Credai president in the National Capital Region, who urged the Noida Authority to consider zero-period benefits for other Greater Noida Authority Plan restrictions imposed during winter.
Overall, the potential second waiver under the Noida reschedulement policy brings hope to builders in the region. It not only offers relief in terms of penalties and interest, but also acknowledges the challenges faced by developers during the implementation of various regulations and environmental considerations. The assessment of applications and individual handling ensures fairness in the process and takes into account the specific circumstances of each project. With this initiative, it is anticipated that developers will be able to clear their dues more efficiently, leading to positive ripple effects in the real estate market and providing much-needed relief for stalled projects.
