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The Noida Authority has issued notices to 13 real estate developers, demanding settlement proposals for their outstanding dues, which total over INR 8,510.69 crore, including interest and penalties. The major developers involved are ATS Group (INR 7,786.06 crore), Supertech Group (INR 3,064.72 crore), and Logix Group (INR 1,113.24 crore). This move aims to resolve the longstanding issue of flat registration, crucial for ownership and financial leveraging. A recent Uttar Pradesh government order incentivises developers to clear dues by waiving interest and penalties, potentially easing financial strains for both developers and homebuyers. The coming weeks are critical for the success of this initiative.
The Noida Authority has issued notices to 13 real estate developers, demanding a proposal for settling their outstanding dues within 15 days. These dues, totaling over INR 8,510.69 crore, include interest and penalties accrued on land allotments. Advertisement
Settling these dues is crucial for resolving a long-standing issue for homebuyers - the inability to register their purchased flats. Registration provides crucial ownership rights and unlocks the ability to sell or mortgage the property. Major developers like ATS, Supertech, and Logix group companies are among those facing these notices. The breakdown of their dues is as follows: The ATS Group owes INR 7,786.06 crore, which includes ATS Homes with INR 640.46 crore, ATS Infratech with INR 697.76 crore, and ATS Heights with INR 2,129.88 crore. The Supertech Group has dues amounting to INR 3,064.72 crore, comprising Supertech Realtors with INR 2,245.81 crore and Supertech Ltd with INR 958.91 crore. The Logix Group's dues total INR 1,113.24 crore, which includes Logix Infrastructure Pvt Ltd at INR 446.44 crore and Logix City Developers at INR 666.80 crore.
The remaining developers on the list include Three C (INR 572.51 crore), Celerity Infrastructure (INR 178.65 crore), Elicit Realtech (INR 73.28 crore), Explicit Estates (INR 51.17 crore), and Abet Buildcon (INR 27.67 crore).
The notices are based on a recent Uttar Pradesh government order aimed at resolving issues in "legacy stalled real estate projects." This order offers developers a significant incentive to clear their dues by waiving interest and penalties.Notably, even projects currently under litigation in the National Company Law Tribunal (NCLT) or court can benefit from this scheme if they withdraw their cases.
This initiative presents a win-win situation for both parties. Developers have the chance to settle their dues under more favorable terms, potentially improving their cash flow and project completion timelines. Homebuyers, on the other hand,can finally move forward with registering their flats and gaining full ownership, providing them with peace of mind and the ability to leverage their property for financial needs.
Delayed flat registrations and possession have plagued Noida and Greater Noida for years, causing significant stress and financial hardship for homebuyers. This issue has also received attention at the central government level, with a committee headed by Amitabh Kant proposing solutions to address the distress faced by homebuyers, developers, and local authorities.
The Noida Authority's action, coupled with the UP government's initiative, offers a potential pathway to resolving this long standing problem and bringing relief to thousands of homebuyers. With a clear deadline set for developers to respond,the coming weeks could be crucial in determining the success of this initiative.
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