35 Developers Agree to Redevelopment Package set by Noida Authority

After a “final” notice by the Noida Authority, developers of 15 stalled projects have agreed to take up the Uttar Pradesh government’s rehabilitation package. This brings the total number of realtors in the city to 35. As a result of their consent, 3,412 flats will be registered, and the Authority will recover Rs 552.5 crore in dues within the next two months. Moreover, over the next two years, the Authority expects to earn a revenue of Rs 2,210 crore from registering a total of 13,639 flats.

Registration Camps Set Up for Homebuyers’ Convenience

To make the registration process easier for homebuyers, the Noida Authority has initiated setting up registration camps in societies in collaboration with the sub-registrar’s office. This move aims to speed up the registration process and provide convenience to buyers. The registration camps will commence from March 1, starting with a project in Sector 77 Express Zenith. The Authority plans to process 100 registries in a day.

Key Features of the Rehabilitation Package

The rehabilitation package, announced by UP Industrial Development Commissioner Manoj Kumar Singh in December 2023, offers several concessions and benefits to the developers who opt for it. According to the package, developers who give their consent must pay 25% of their revised dues within 60 days. Other benefits include a ‘zero period’ to waive off specific dues and interest accrued during the pandemic years.

Rebates and Dues Clearance

Most of the 35 developers who have chosen the rehabilitation package received a 21% rebate on their total dues. Out of the 35 projects, four have seen their dues reduced to nil after providing the benefit of a zero period of two years. These specific projects are Hyde Park, Gulshan Dynasty, Prateek Fedora, and Ecocity. For the remaining 25 projects, whose dues range up to Rs 100 crore, they are required to clear their dues within one year.

Developers Yet to Opt for the Relief Package

While 35 developers have agreed to the rehabilitation package, there are still 22 developers who have not yet opted for the relief measures. However, the Noida Authority CEO is optimistic that more builders will give their consent in the coming days. If those builders fail to opt for the package, they will be required to make full payment as per the policies of the Authority. With a significant number of defaulter projects in Noida City, about 32,000 flats are currently affected, and the builders owe the Noida Authority a sum of Rs 8,000 crore. The rehabilitation package offered by the Uttar Pradesh government provides much-needed relief to developers and aims to address the issues faced by homebuyers installed projects. The authorities are striving to streamline the process and make it more convenient for all parties involved.

Sumit Mondal Content Analyst at Square Yards
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