Noida authority may allow co-developers to complete pending projects

NOIDA: The Noida and Greater Noida authorities are considering a co-developer policy as a single
solution for two major problems-finishing incomplete housing projects stalled due to a lack of funds and
realising its dues.
Companies will be allowed to infuse money into a project and complete them under the policy, instead of
realtors striking co-developing agreements on their own, which has happened for a few stuck projects in
the city.
The new firms, however, will have to take responsibility for clearing the nearly Rs 40,000 crore land dues.
The policy is expected to benefit lakhs of homebuyers who have been waiting for their homes or the registry of their flats for nearly a decade.

Ritu Maheshwari, the CEO of the two authorities, said the co-developer policy was proposed by the
builders’ body, Confederation of Real Estate Developers Association of India (CREDAI) while seeking
resolutions to the logjam over land premium dues.
“The authorities are working on a few policies, including the co-developer policy, which would allow new
developers to take over commercially viable incomplete projects and deliver them,” Maheshwari said.
However, the new developers would have to ensure that the authorities’ dues were cleared on priority. “We
will think of giving incentives to developers if they promise to clear the dues,” she added.

If implemented, the policy will bring relief to more Greater Noida complexes than their Noida counterparts, as they are closer to completion.

Notably, a co-developer policy was introduced in 2017 but it failed to take off due to issues related to land
dues.
CREDAI (NCR) secretary Gaurav Gupta said they have urged the state government to introduce revised
policies not only to allow co-developers to complete stuck projects but also to rationalise the land dues.
“Until this is done, no promoter will step forward. The dues, which the authorities are demanding, must be rationalised. Only those projects that have sales receivables greater than the project cost can be considered viable. The authorities will also be required to ensure timely provision of required approvals to assist new
developers in completing projects on time,” Gupta said.

Builders owe over Rs 39,500 crore to the authorities, with most of the projects launched about a decade
ago, not completed on time. According to CREDAI, bringing in new promoters to complete unfinished projects is not new. “There are
ample projects where co-developers have been brought in to complete projects in Noida. But the present
scenario is different as we are seeking a policy to complete the stalled projects. The Authority’s
permission will be required to obtain the necessary approvals to restart the projects, as funding will only
be opened after their permission,” Gupta, who is also the director of SG Estate, said.
To recover its dues, the authorities have started sealing and cancelling unsold inventory. But this has not
served the purpose as in most cases, third-party rights have been created. Earlier this year, the authorities came up with a reschedulement policy, under which builders could pay the dues in four instalments over the period of two years. Developers of as many as 20 group housing projects applied for the policy in Greater Noida while only 10 applied in Noida.