Curation Team
NOIDA: Greater Noida Industrial Development Authority (GNIDA) has approved partial occupancy certificates for several stalled housing projects under UP govt’s rehabilitation policy that was based on recommendations of the Kant committee to rescue stalled real estate projects.
So far, builders of 37 of the 98 stalled projects in Greater Noida have deposited 25% of their total dues, the basic criterion to avail of policy benefits that include rescheduling of debt and a default zero period waiver because of the Covid pandemic.
Under the approved policy, developers who have part-paid will get occupancy and completion certificates (OCs/CCs) proportionate to the payment made, allowing handover of an equivalent number of completed units. For example, if a developer pays 50% of the dues, it will receive OCs/CCs for 50% of the units.
The decision is expected to speed up possession for many homebuyers. Greater Noida has the highest number of stalled projects in the country. Along with Noida, it forms the lion’s share of stalled projects that led to the Centre setting up the committee under former Niti Ayog CEO Amitabh Kant to look for a way out. UP govt came up with the relief package in Dec 2023.
Without OCs/CCs, developers cannot raise the final payment demand from buyers, execute property registries or hand over flats. This left hundreds of completed homes locked because the builder defaulted on dues and OCs/CCs were held back and buyers paying both EMIs and rent since they could not take possession.
Dinesh Gupta, secretary of Credai West UP, said after issuance of OCs from GNIDA, developers would be able to issue their final outstanding demands to flat allottees. The recovery of dues from buyers would directly open payment gateways for clearing subsequent instalments to the authorities, either directly or through construction finance lenders, he added.
The final OC/CC will be granted only after full payment. Credai, an association of realtors, had suggested provisional OCs valid for 90-120 days with developers giving undertakings or indemnities to ensure compliance with policy rules for payments of the remaining 75%.
Gupta called the police approval a “win-win” for all stakeholders, saying it would speed up registrations, ensure faster recovery of dues and revive cash flows in the Noida-Greater Noida real estate market. The GNIDA board approved the proposal on July 28. GNIDA additional CEO Saumya Srivastava confirmed the development, adding that the decision was taken in homebuyers’ favour.
The Dec 2023 policy covers 98 stalled projects, excluding the Supreme Court-monitored Amrapali and Unitech and projects that are in bankruptcy proceedings at National Company Law Tribunal (NCLT). Of these, 77 opted for the rehab policy, while 21 did not pay the initial 25% dues.
These 77 projects have 85,242 sanctioned flats. Among them, 13 projects saw their dues reduced to zero after recalculation and 27 cleared the entire dues, allowing them to proceed with registries of all their flats. The rest are those who have paid 25%.
The policy has so far generated Rs 1,352 crore for GNIDA, with another Rs 1,680 crore expected over the next year, sources said. Across the 77 projects, CCs have been issued for 45,774 flats, while work is pending on 39,468. So far, 40,107 flats have been registered – 16,294 after the policy came into effect.
Of the 21 projects that did not opt for the scheme, 19 are in litigation in different courts while recovery certificates have been issued against two projects to recover dues.
