Noida to form its own scheme to address issues in real estate sector

The Noida Authority has decided to develop a scheme to address the challenges posed by delayed real estate projects, officials said. They added that the decision follows the recognition that the recommendations made by a central government committee, led by former Neeti Ayog CEO Amitabh Kant, are not viable solutions to the prevalent issues encountered within the real estate domain of Noida and Greater Noida.

Within the span of a month, the Noida authority intends to draft this scheme and subsequently submit it to the Uttar Pradesh government for requisite approval.

Prabhas Kumar, the additional chief executive officer of the Noida authority, said, “Our concerted efforts are directed towards formulating an elaborate scheme capable of effectively resolving the issues plaguing the real estate sector. We are committed to devising this scheme within a month, as it necessitates the ultimate endorsement of the Uttar Pradesh government prior to its practical implementation.”

The central committee mandated to formulate an effective policy that can address the issues being faced by the real estate sector across the country, in its report has recommended to the Uttar Pradesh government that the three authorities — Noida, Greater Noida and the Yamuna Expressway– should allow registry of flats without asking the defaulter developers to clear land cost dues against a housing project.

The committee made multiple recommendations to the Uttar Pradesh government that it will look into and take appropriate decisions, which will impact the fortunes of at least 167,000 homebuyers who have been waiting for their homes for almost a decade.
However, certain recommendations laid out by the committee have been deemed “impractical” by the Noida authority’s board, a conclusion reached during a meeting convened on August 13. These suggestions were deemed unfavourable due to their potential impact on the authority’s interests.

An official from the Greater Noida authority, aware of the matter, said, “The committee’s propositions advocate transferring the responsibility of granting occupancy certificates for completed housing projects to the UP Real Estate Regulatory Authority. Additionally, it suggests disassociating property registry from financial obligations tied to a project. Regrettably, these proposals and other counsel contained within the report run counter to the authority’s interests. This is because they stand to affect their financial standing and curtail their regulatory powers. Consequently, in response to these impracticable notions, the authority has opted to compile its own report, one that not only resolves realty sector challenges but also safeguards its financial well-being.”
In a collaborative effort, the Noida, Greater Noida, and Yamuna authorities are poised to collectively devise a practical scheme to address the concerns of the real estate sector.

Manoj Kumar Singh, the additional chief secretary of Uttar Pradesh and state infrastructure and industrial development commissioner, who also holds the chairmanship of Noida and Greater Noida authorities, said, “A joint task force comprised of representatives from the three authorities will collaboratively compile a comprehensive report. This report will outline practical solutions to alleviate the ongoing crisis encountered by the real estate sector. The joint task force will assess the ramifications of the central government report, subsequently crafting an alternative proposition for submission to the Uttar Pradesh government.”

The joint team will determine if the authorities will allow the registry of the flats without demanding financial dues, and then what impact it will have on the financial strength of the three industrial bodies. The committee will make an assessment of each recommendation and then formulate a new one that will be practical on case to case basis, said officials.

Meanwhile, Mohit Arora, the director of Supertech Limited, said, “We remain hopeful that the collaborative efforts of the three industrial authorities and the Uttar Pradesh government will yield a comprehensive resolution, significantly benefiting the multitude of homebuyers eagerly awaiting the resolution of their grievances.”
Around 15000 homebuyers are affected in the different projects being developed by the Supertech Group that is scheduled to deliver these units in next two years time as the developer has arranged a fund of 1600 crore for the same.