The Noida Authority is taking a firm stance against builders who have defaulted on payments for stalled housing projects, initiating measures to ensure homebuyers finally receive the registrations they have been waiting for. The authority plans to attach and auction assets of defaulting developers who have not adhered to the Uttar Pradesh government's policies regarding these projects.
Out of 57 stalled housing projects in Noida, a significant number of developers have failed to meet their financial obligations. Under a policy introduced on December 21, 2023, builders could receive interest waivers by paying 25% of their total dues upfront, with the remaining amount payable over three years. However, many developers have not complied with these terms.
Noida Authority CEO Lokesh M. stated that the authority will withdraw interest waivers for non-compliant developers of "stalled legacy housing projects". He noted that some developers paid only a portion of the dues, sometimes just 25%, and then failed to pay the rest or respond to notices. According to the Noida Authority, 10 projects have developers who have not paid any dues, 25 projects have developers who paid some amount, and 35 projects have developers who paid only 25% but did not clear the rest.
The CEO has said, "We will attach assets of the defaulter developers, auction the assets, and also take other measures as per this policy's provisions. Our objective is to ensure that the homebuyers get their registry done".
The lack of adherence to the payment plan has stalled the registration of 5,758 apartments. So far, only 3,724 flats have been registered. Homebuyers have expressed frustration with the delays, with some stating they have already paid the full amount for their flats but cannot get them registered because of the developers.
The authority's actions aim to recover dues and facilitate property registration for affected homebuyers. These measures reflect a broader effort by the Uttar Pradesh government to resolve the issue of stalled housing projects and protect the interests of homebuyers. By cracking down on developers who have not paid their dues, the authority hopes to encourage the timely completion of projects and restore confidence in the real estate market.
