Realtors in Uttar Pradesh Given Deadline to Opt for Government Rehabilitation Package
Real estate developers in Uttar Pradesh (UP) have been given until February 22 to give their consent to the state government’s rehabilitation package. If developers do not reply or agree to the package by the deadline, it will be assumed that they do not want to become part of the rehabilitation package. In this case, they will be required to pay their entire dues. This “final” notice was issued by the Noida Authority to 27 developers on Monday. CEO Lokesh M. stated that if developers decide not to take up the scheme, the authority will take actions like issuing recovery certificates and sealing their properties. Moreover, Occupation certificates (OC) and completion certificates (CC) won’t be issued to them. The rehabilitation package includes clearing 25% of revised dues for developers who opt for it.
Restructuring Packages Calculated Based on Revised Dues
Realtors who have given their consent and are ready to clear 25% of their revised dues include IITL Nimbus Hyde Park, Sector 78, Capital Infraprojects The Golden Palm, Sector 168, Divine India Infrastructure Divine Meadows, Sector 108, HR Oracle Elite Homz, Sector 77, Aims RG Angel Eco City, Sector 75, Sunshine Infrawel Helios, Sector 78, and Gulshan Homes Ikebana, Sector 143. The revised dues were calculated by deducting interest and penal interest accrued during the period from April 2020 to March 2022 due to the Covid-19 pandemic. Most of these developers owe less than Rs 100 crore to the Noida Authority. The approval of the rehabilitation package has facilitated registries for 2,500 flats in the city. It is estimated that around 32,000 flats in 57 defaulter projects owe the Noida Authority a total of Rs 8,000 crore.
Condition for Developers Seeking Waiver of Dues
In December 2023, the UP government had issued guidelines to revive stalled projects by offering concessions, including a “zero period” to waive specific dues during the pandemic. However, a developer has stated that the company would opt for the package only if the Authority extended the “zero period” benefit for an additional two years (2013 to 2015) due to the construction ban near the Okhla Bird Sanctuary. The developer believes that this would substantially decrease their dues and allow them to avail of the benefits of the rehabilitation package. Approximately 17 developers would benefit from the proposed zero period, but the Noida Authority has decided to grant this benefit only after developers provide their consent and pay 25% of their dues within 60 days. In conclusion, realtors in Uttar Pradesh have a limited time to decide whether to opt for the government’s rehabilitation package. Failure to give consent by February 22 could result in developers having to pay their entire dues. The package has already been approved by several developers who are now ready to clear 25% of their revised dues. It remains to be seen how many other developers will choose to participate in the scheme and benefit from the conditions offered.
