In the recent board meeting, the Noida Authority amended its rule according to which, it becomes mandatory for realtors to make one-time payments for group housing or commercial land cost unlike earlier, where they have the option to pay the same in parts. The Authority believes that this change in its rules for allotment makes it easier for them to receive land dues from realtors without any issue, unlike in the earlier scheme, under which realtors got 5 to 7 years to make payment, an official said.
As per the new rule, a realtor has to deposit the total payment within 90 days of allotment, an official informed. It will ensure that the homebuyers and investors do not face any stress as a large number of projects are stuck due to realtors who are unable to make the land cost payments.
Ritu Maheshwari, Chief Executive Officer, Noida Authority was quoted saying, “We have changed allotment rules in our board meeting so that the interest of homebuyers and authority can be protected.”
Another Authority official said, “Also, realtors forming consortiums to take land for realty projects will not be able to exit from the scheme until the project obtains Occupancy Certificate and delivers them to investors.” Earlier, realtors formed consortiums to get an allotment and exit midway, affecting the interest of homebuyers.”
After getting land allotment from the Noida Authority a plethora of realty projects between 2007 and 2017 are stuck due to a financial crunch. Because of non-payment by developers, the Noida Authority is unable to release occupancy certificates as a result many homebuyers are still waiting to get their registry done. There are approximately 50 stalled projects due to the financial crisis and nearly 1 lakh apartment owners who are concerned about getting ownership.
