65 realty projects are unsafe to invest, Noida authority cautions homebuyers

The Noida authority had released a list of 58 realty projects, which have defaulted on land cost payments to the government, and advised homebuyers not to invest in these projects. This is the first time since 2017 that the authority has come out with such a lost, although homebuyers have been demanding it for a long time.

Heeding those demands and after facing much criticism for the delay, the authority finally uploaded the details online on March 20, said officials.

Homebuyers since 2017 have been demanding transparency on the grounds that putting such details online will help new buyers from unknowingly invest their life’s earning in a sick or stuck project.

“The authority has uploaded the details online about all realty projects and the details will be revised on a monthly basis,” said Prasoon Diwvedi, officer on special duty, Noida authority.

Anyone can go online on https://pims.mynoida.in/GroupHousing/GroupHousingProjectRecord?AppType=4 and check the credentials of the developers and their projects, said officials.

All Noida developers, including Supertech, ATS, Logix, AIMS MAX Gardenia, Assotech and 3C, are among the financial defaulters’ category.

Of a total 115 projects, 34 projects have been marked “safe” as the promoters in these projects have paid up the financial dues on time. Buyers may buy flats and execute registrations in these projects, said officials.

A total of 65 are financial defaulters, where the buyer cannot execute registry to transfer the property title to their names as the promoters of these projects fail to pay the dues to the authority, said officials. Fifteen of these 65 projects are facing insolvency and bankruptcy proceedings as they defaulted to pay dues to lenders, including the Noida authority.

“If a promoter pays the financial dues on time, the authority will allow the firm to execute registries, paving way for the transfer of the property title to the buyer. The authority prohibits registry on financial default so that the realtor is forced to clear the dues,” said another Noida authority official, asking not to be named.

The authority will revise the list on a monthly basis and remove the name of a builder from the defaulter category after it had cleared all dues, said officials.

However, developers said they will not come out of the defaulter category until the government comes up with a policy that enables them to make payments.

“No realtor wants to be on the list of defaulters as they have to carry on with their business. If a builder is placed in the defaulter category, the firm will no longer be eligible for loan. They are unable to pay because they are facing financial crisis and this crisis will be addressed only when the Uttar Pradesh government comes out with a policy that rationalises their dues and waive the interest component,” said Amit Modi, secretary, Confederation of Real Estate Developers Association of India (CREDAI), a realtors’ lobbying group.

Homebuyers have welcomed the authority’s move to make the list public.

“We welcome the move as it will create awareness about realty projects. Even so, Noida authority delayed uploading the details for so many years. Had there been more transparency earlier, many would have been saved from investing in defaulted project s,” said Arun Chauhan, a buyer who bought a flat in Aranya project in Noida.