Noida authority ultimatum to realtors: Pay dues after waiver or face action

The Noida authority has issued an ultimatum to realtors that they either pay land dues in accordance with the new December 21, 2023, realty policy or be ready to face action.

The move comes after only 13 of 57 realtors of stalled housing projects came forward to pay dues till date, after availing of interest waivers under the new policy.

After 13 developers paid 25% of their total dues, the Noida authority decided to issue permission for registry of flats in their housing projects, in accordance with the policy approved by the state government on December 21, 2023.

Under the policy, developers can avail of waivers on penal interest for two years -- the Covid 19 period -- and also for the period when construction got disrupted owing to court orders. After deducting penal interests, these 13 developers agreed to pay 25% of the total dues to become eligible for registry of apartments, officials said.

Seven of these 13 have already paid the dues and the remaining have given the consent and are in the process of making payments in order to get permission for registry.

“After giving so much time and holding multiple rounds of meetings with promoters of stalled housing projects since the announcement of the policy, there are only 13 projects, which have availed of the benefits of this scheme. Now we have decided to issue an ultimatum to the remaining builders that they either accept the provisions of the policy or reject the same. We will take suitable action against those who fail to come forward to make payments,” said Lokesh M, chief executive officer of the Noida authority.

The authority has sent the ultimatum as a letter to the promoters of the stalled housing projects and have given them a week’s time to submit their replies.

“After a week’s time the authority will take further action against those who default on payments thereby causing thousands of homebuyers to suffer,” said Lokesh M.

Under the policy the authority has the mandate to cancel the allotment of defaulter realtors, who do not want to pay the dues, and take over the incomplete project. The policy also empowers the authority to blacklist the defaulter developer for a period of five years in the jurisdiction of the three industrial bodies -- Noida, Greater Noida and Yamuna Expressway.

The realty policy clearly states that its provisions have to be implemented within three months of its notification.

“If the realtors will not use this scheme, then we will not give them the interest waivers, which are being offered under this policy,” said Lokesh M.