Stalled Projects Seek Relief Under UP Government’s Rehabilitation Package
Nearly 60% of the stalled projects under the three industrial authorities in Uttar Pradesh have sought relief under the state government’s rehabilitation package. This move is expected to unlock registrations for over 63,000 flats within the next year. It has been reported that out of the 161 projects, 93 have already availed of the package since its announcement in December last year.
Punitive Measures Enforced against Non-Compliant Developers
To ensure compliance, the authorities have been instructed to enforce punitive measures outlined in the rehabilitation package against developers who do not fulfill their obligations. These measures include canceling land allotments, sealing vacant or unallocated flats, and reclaiming unconstructed or vacant areas from non-compliant developers. This step aims to streamline the recovery process and create accountability in the real estate sector.
Rehabilitation Package Benefits for Noida Developers
In Noida, a total of 57 projects had defaulted on land dues. Out of these, 22 projects have accepted the rehabilitation package, which offers a two-year zero-period relief from April 2020 to March 2022. This relief exempts developers from paying interest and penalties for the duration when work was stalled due to the COVID-related lockdown.
Positive Progress in Greater Noida
Greater Noida has also witnessed positive progress, with 66 out of the 98 defaulter projects opting for the rehabilitation package. These developers have already paid a cumulative amount of Rs 429 crore in dues to the Greater Noida Industrial Development Authority (GNIDA). With an additional Rs 965 crore expected to be collected, GNIDA anticipates executing registries of 48,776 flats in these residential projects.
Relief for YEIDA Region
The Yamuna Expressway Industrial Development Authority (YEIDA) has seen positive developments as well, with five out of six defaulter projects depositing Rs 172 crore to date. An additional Rs 375 crore is expected to be deposited, leading to the registration of 6,879 flats. Overall, more than 8,000 flat registrations have been completed across the three authorities.
Additional Relief for Projects near Okhla Bird Sanctuary
In an effort to address the concerns of projects that were halted due to an order by the National Green Tribunal (NGT) banning construction within a 10 km radius of the Okhla Bird Sanctuary, the Noida Authority has decided to offer additional relief on a case-by-case basis. This relief will be provided to builders who have accepted the government’s package by paying the initial 25% of their recalculated dues.
Bright Prospects for Uttar Pradesh Real Estate Sector
With the development authorities reporting a significant number of projects availing of the rehabilitation package, it is evident that the real estate sector in Uttar Pradesh is undergoing a positive transformation. The government’s support and incentivized relief measures are not only helping developers but also ensuring the timely delivery of flats to homebuyers.
The implementation of punitive measures against non-compliance sets a precedent for increased accountability and transparency in the industry. As more projects come forward to benefit from the relief provisions, the real estate sector in Uttar Pradesh can look forward to stability and growth.
As the authorities closely monitor the progress of individual projects, it is expected that more developers will avail of the rehabilitation package and contribute to the consistent development of the residential sector. This wave of positive momentum in the real estate industry will reflect positively on the overall economic growth of the state, creating employment opportunities and attracting investors. For homebuyers, this development brings a renewed sense of optimism and assurance in the real estate market of Uttar Pradesh.
