Bringing relief to homebuyers and builders, the Greater Noida and Yamuna authorities are bringing exit plan policy for the builders to surrender extra land of a project if they are unable to develop it further.
The decision comes as the builders are unable to pay dues and are also invested in other projects. The plan will help solve the issue of delayed possession.
Authority official said the builders owe `25,000 crore debt to authorities and construction of the projects are slow too. Several developers have failed to deliver projects due to financial crises. Around 155 group housing lands were allotted to different developers since 2006 in Greater Noida west but 30-40 per cent land remained undeveloped.
However, Buyers association said the move would not affect big developers. Both authorities have sent the proposal to Uttar Pradesh Government for ratification after passing it from board meetings.
The proposal of Greater Noida authority reads that the flats in Greater Noida west (Popularly know as Noida extension) are not being sold from last few years. The builders are also not launching new projects and had left extra lands. Most of the builders have been reported defaulter and they are not paying dues from long time.
“We have power to cancel land allotments but it could lead to litigation. We have brought an intermediate way as Exit Plan policy with some rules. If developers of group housing project are not able to develop the entire land, they can surrender extra land and take completion certificate as for their paid installments. Even, they can get their deposit back. We will deduct 15 per cent of total amount if they apply to surrender it. Then the authority will allot it to new developers,” said Deepak Aggrawal, Chief Executive Officer, Greater Noiad authority.
Meanwhile, the Yamuna authority proposal said they had allotted 11 townships, 4 group housing, 13 ADZ projects, 21 thousand residential plots as these schemes were launched since 2009.
But the developers are unable to develop the group housing land because of lack of buyers. Even, a few allotees have only done their lease deed with authority. While, others schemes are facing litigation with farmers and the authority have not given them possession.