Curation Team
Renox Group and Diligent Builders have acquired two unfinished housing projects in Greater Noida, giving hope to more than 200 individual investors who have been awaiting delivery of their apartments for over a decade now.
The NCR-based property developers have started development work on over 1.5 million sq ft of space after clearing the dues of the lenders and the state urban development authority.
“We have completed the acquisition of Nivas Promoters by paying all the liabilities of the development authority, financial institutions and former allottees,” said Shailendra Sharma, chairman of Renox Group. “The old allottees of the project, who were stuck for about 12 years, have been given relief. The claims of financial institutions were paid, which reduced the NPA (non-performing assets).”
The group is investing Rs 300 crore on the 3.3-acre land parcel of the erstwhile promoter.
There were around 70 buyers who had paid 10-20% of the cost and they have been given a full refund.
In the Diligent Builders project, 60 of the 120 home buyers have chosen to stay and the remaining have opted for a refund.
In this case, only the management of the company has been changed to revive the project.
“The change of directors with positive outlook enabled to revive the stalled project and the supportive policy of the government on the basis of the recommendations of the Amitabh Kant Committee played a pivotal role in ensuring that projects get completed and home buyers get their much-deserved homes,” said Ashwani Nagpal, COO of Diligent Builders.
Renox Group said that based on the approved map and layout, it will develop approximately 924,000 sq ft of area. This will have 400 units spread over four towers.
“By getting the liabilities and claims resolved and payments verified in UP RERA, the registration of the old project was being cancelled and secured the registration of the new project,” said Sharma. “Initially, we have invested Rs 120 crore in Renox Thrive, which includes complete demolition of the decade-old construction and commencement of the new construction as per the new approved plan. The remaining investment will be raised by the institution itself and through sale.”
Diligent Builders will develop 575,000 sq ft with 316 units spread over two towers.
Recently, Nimbus Projects Ltd, a listed real estate developers headquartered in New Delhi, said it will invest close to Rs 1,000 crore, covering the dues of the state authority and the lenders, to revive a stuck housing project in Noida’s Sector 168.
The first project under the UP stalled project policy, formulated by a committee headed by Amitabh Kant–who is now India’s G20 sherpa–is being carried out by realty developer Hawelia Group, which has taken over a 22-acre partially delivered project, Shree Radha Sky Garden, in Greater Noida.
According to the Confederation of Real Estate Developers’ Associations of India (Credai), 190,000 housing units worth Rs 1 lakh crore are stuck in Noida, Greater Noida and Ghaziabad. In Greater Noida region alone, at least 36 real estate projects are facing insolvency proceedings.
It is estimated that Rs 40,000 crore is due to the Noida, Greater Noida and Yamuna Expressway authorities, including premium, interest and penal interest against allotted plots on which real estate projects are at different stages of execution.
