Curation Team
NOIDA: In a bid to resolve the long-standing impasse surrounding Sports City, developers have urged UP govt to introduce a rehabilitation policy similar to the one implemented for stalled group housing projects based on recommendations of the Amitabh Kant committee.
The builders have proposed to clear their recalculated dues by paying 25% within 60 days and the remaining amount over three years.
The appeal comes as over 8,000 residents already occupy homes in Sports City developments across sectors 78, 79, and 150, while another 20,000 await possession. Credai (Western UP) — the umbrella of builders — highlighted that despite being on a par with other projects, Sports City developments were excluded from the state’s rehabilitation policy.
Dues involving Sports City projects gained prominence after the Allahabad high court in Feb this year ordered CBI and ED investigations into the matter and asked Noida Authority to issue recovery notices to developers. While builders secured an interim stay against coercive action from the Supreme Court, subsequent clarifications allowed the Authority to proceed with the recovery of dues.
The Authority, in response, issued fresh notices to the defaulting developers earlier this month. Following this, one consortium partner in a Sector 150 Sports City project — led by Lotus Green Constructions — deposited Rs 80 crore as part of its dues.
In its Aug 1 letter to chief secretary SP Goyal, Credai argued that the Authority should not have issued fresh notices without first resolving outstanding issues, given that the matter was still under the Supreme Court’s consideration.
Credai, in the letter, flagged several anomalies in the calculation of dues. The developers argued that interest rates should align with the marginal cost of funds-based lending rate (MCLR) in keeping with govt orders. They also contested the application of commercial rates for time extension charges, given that only 0.5% of the land use was commercial.
Other contentious issues, according to Credai, include the double imposition of farmer compensation and inconsistent application of zero period benefits. While some projects received waivers till 2017, others were denied similar relief, it alleged.
The developers also highlighted delays in map revalidation and issuance of occupancy certificates, which affected home registrations and loan disbursements.
“Due to delays in approvals, unresolved land dues, and the continuing development ban, many projects are becoming financially unviable and moving towards bankruptcy,” the letter read, emphasising that the delays impacted both homebuyers and state revenue from stamp duty.
