UP unlocks major relief for realtors in Noida | Noida News

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NOIDA: The UP cabinet on Tuesday approved a set of relief measures, among them a Covid ‘zero period’, that the government will extend to developers based on recommendations of an expert committee led by former Niti Aayog CEO Amitabh Kant to revive stalled real estate projects in the state.

relief for realtors in Noida

The panel had, citing the Indian Banks’ Association, identified 2.4 lakh housing units that are in stressed housing projects.Most of these, around 2.3 lakh, are in Noida and Greater Noida.

relief for realtors in Noida

For realtors, the zero-period relief is a significant windfall because it will wipe out 46 months (nearly four years) of interest and penalty from dues they owe to the government for land allotted to them. The Kant committee had recommended two zero-period waivers – one for the Covid pandemic from March 2020-March 2022 and another from August 2013-June 2015 when the National Green Tribunal (NGT) had stopped construction work around the Okhla Bird Sanctuary till its eco-sensitive zone was notified.
Rera set to draw up plan for completion of stuck projects
Approval for the panel’s recommendations also means homebuyers can now hope registries that are stuck because of the deadlock between realtors and the Noida and Greater Noida authorities over land dues can begin. The panel had suggested that registries should not be contingent on recovery of dues from realtors. Sources, however, said a blanket waiver is unlikely and a reschedulement plan could be offered to realtors, asking them to clear 25% of their recalculated dues upfront and the rest over a three-year period for registries to begin.
While the final contours of these relief measures take shape in the weeks to come, the cabinet approval is a clear statement from the government in the runup to the Lok Sabha polls next year about its intention to take a solution-centric approach to a deadlock that has festered for years.
The Noida and Greater Noida authorities have steadfastly refused to yield any ground to realtors, who have gone all the way to the Supreme Court against an interest regime that they have opposed tooth and nail, blaming it for bloating their dues to unrealistic levels.
This is a significant softening of stance. It is estimated that if the two zero-periods are considered, the Noida Authority will have to take a haircut of Rs 7,500 crore from its total outstanding of Rs 28,000 crore, while the Greater Noida Authority will have to let go of Rs 6,000 crore (out of Rs 14,000 crore) and the Yamuna Expressway Authority will have to forego Rs 2,500 crore (out of Rs 4,800 crore).
In Noida, there are around 67,000 flats that are either incomplete or have been delivered to buyers but are yet to be registered. Of these, buyers of 32,000 flats that are not encumbered in court cases can expect quicker resolution. For the rest, most of them in projects facing bankruptcy proceedings in the National Company Law Tribunal (NCLT), resolution will depend on the status of the cases and decisions of the court-appointed insolvency resolution professionals (IRPs).
Greater Noida has the highest number of stressed projects, with 1.47 lakh affected flats. Of these, 79,000 are in projects that have gone to NCLT or other courts. Resolution will be quicker for the others. These recommendations will, however, not have any impact on the status of registries in Sports City projects, where the deadlock is over meeting of licence conditions.
According to a ballpark estimate, around 1.2 lakh of the 2.3 lakh stressed housing units in Noida and Greater Noida are yet to be delivered. Possession has been handed over in the remaining 1.1 lakh, but registries remain to be done.
The Kant committee laid out a roadmap for the rollout of relief measures, beginning with delivered projects where registries are due and then moving on to expediting possession in substantially completed projects while mandating real estate regulator Rera to draw up a completion plan for stalled projects. Officials said the cabinet also endorsed a co-developer policy to facilitate the completion of financially viable stalled projects.
Supposing a rescheduling plan is rolled out as a condition for registries, realtors will still see the financial burden ease considerably. For example, say a company with Rs 100 crore in dues gets a zero-period waiver of Rs 20 crore (20%). Registries can begin with an upfront payment of 25% of Rs 80 crore, which is Rs 20 crore.
Noida Authority CEO Lokesh M told TOI, “The cabinet approval aims to address the financial constraints faced by developers due to the pandemic and legal issues while also allowing the completion of stalled projects and providing relief to both developers and homebuyers. However, the implementation details will only become clear on receiving the government order. It is likely to be issued within a week.”
UP-Rera has been directed to compile a list of substantially completed but unoccupied projects within the next 30 days where possession can be offered after clearing administrative hurdles and issuing completion certificates.
UP-Rera chairman Sanjay R Bhoosreddy told TOI, “The state government has taken a major step by approving the report prepared at the instance of the ministry of housing and urban affairs (MoHUA) to solve legacy issues. We have constituted a team to examine the recommendations. Interest of homebuyers would be kept paramount and we will adhere to the timeline stated in the report.”
Exemptions that could be offered for revival of projects could be in the form of waivers in interest, allowing partial surrender of vacant land and providing three-year extension of the approved plan without levying a late fee.
Developers and homebuyers welcomed cabinet decisions. Manoj Gaur, president of real estate association Credai in NCR and CMD of Gaurs Group, said, “The government’s decision directly benefits a substantial number of 2.4 lakh homebuyers in NCR. Exempting interest during the zero period allows many flat owners to proceed with home registration without added financial burden. Beyond immediate implications, this decision brings positivity for the broader real estate sector.”
Amit Modi, director, County Group, added, “All stakeholders stand to gain, including financial institutions, authorities, state exchequers and developers. Homebuyers benefit from home deliveries and registrations, authorities receive dues, and state exchequers witness increased property registration revenues. This move also aids several developers to turn net positive.”
Rajiva Singh, president of Noida Federation of Apartment Owners’ Association (NOFAA), said, “We anticipate an end to the long wait for a majority of homebuyers. We appreciate the commitment shown by governing bodies and public representatives.”
Vimal Nadar, senior director and head of research at Colliers India, said the cabinet move would inject vitality into long-inactive projects in NCR



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