Realtors’ body urges development authorities to take sympathetic view on outstanding land dues


new delhi, nov 29: Realtors’ body CREDAI-NCR on Tuesday urged the development authorities of Noida and Greater Noida to take a “sympathetic” view on their outstanding land dues to save them from going into bankruptcy and also to protect homebuyers’ interest.
More than 100 real estate developers of Noida and Greater Noida held an internal meeting to discuss the issue and demanded that the authorities should come up with one-time settlement scheme to bail out builders, the association said in a statement.
Real estate developers of Noida and Greater Noida have been hit badly following the Supreme Court judgement to recall its order of June 10, 2020, which had capped the rate of interest at 8 per cent on the dues for land given on lease to different builders.
The development authorities have started sending notices to builders, asking them to pay their outstanding dues related to land allotment.
CREDAI-NCR said that the blanket implementation of the Supreme Court order by Noida and Greater Noida authorities can delay registry of 1.5 lakh homes in these two cities and can also lead the realty developers to bankruptcy.
Manoj Gaur, President of CREDAI-NCR said, “After studying the SC order, and the authorities’ response, the developers felt that the 15-23 per cent compound interest would raise the final amount substantially.” “We are of the view that it would take the final figure much higher than the current market rate. In that case we might have to take recourse to NCLT (National Company Law Tribunal),” he said.
Since occupancy and completion certificates are linked to the clearance of the dues, Gaur said the buyers would not be able to register their homes.
CREDAI-NCR also demanded a One Time Settlement (OTS) scheme as it was introduced in Haryana that amicably settled the issue.
“Since Uttar Pradesh is also a BJP-ruled state like Haryana, a sympathetic view is the need of the hour,” the association said.
The developers also drew the attention of authorities that the delays were also on account of events outside their control.
It pointed out that the plots allotted to them did not have clear titles.
Moreover, the NGT order on Okhla Bird Sanctuary banned all construction activities.
“The settlement of the farmers’ compensation issue took an inordinately long time,” the association said.
Access to plots and development of basic infrastructure such as electricity, as promised by the authorities, did not materialize within the stipulated time, it added. As a result, developers had to defer taking possession of the land.

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