Builders to clear dues to end registry logjam in Noida & Greater Noida

NOIDA: Private builders announced on Tuesday they would start making payments to the development authorities in Noida, Greater Noida and the Yamuna Expressway to end the stalemate over registries. According to an estimate prepared by the developers, more than 50,000 buyers are waiting to get their properties registered in the district.

These buyers have invested in about 385 group housing and township projects, for which the three authorities have already given their approvals. But in the absence of a payment plan announced by the authorities, the builders have been unable to clear their dues and the registry process has been held up.

The developers said they would now start calculating their dues in keeping with the lending rate based on the State Bank of India’s marginal cost of funds. The decision to start clearing the dues was taken at a meeting between a delegation of builders and the chief executive officer of the Noida Authority on Monday.

“The builders will have to give an undertaking that the provisional payment is being made for now to expedite the registry process. The final amount will be decided and settled according to the directions of the Supreme Court,” said Ritu Maheshwari, the Noida Authority CEO.

The apex court is scheduled to hear on March 22 a contempt plea filed by private developers on the way their dues and interest rate are being calculated and a review petition submitted by the Noida Authority. Depending upon the tenure of the debt, sources said the total amount that each builder should pay to the respective authorities could get slashed in the range of 10% to 40%.

Builders, however, heaved a sigh of relief. RK Arora, the president of NAREDCO (UP), said, “The Authority has agreed to take payments in parts in keeping with the SBI MCLR. A message has been sent to all our members to come forward and get the registry of the flats done without further delay.”

Prashant Tiwari, the president of CREDAI (west UP), said, “Even after completing their projects, a number of builders were not getting the permission to execute registries. Now, both sides have reached a compromise and it is the buyers who will benefit from this.” Both Tiwari and Arora corroborated that more than 50,000 ready flats were lying unregistered in the city.

Buyers, too, backed the decision. “We have been stuck for years without any fault. Finally, things are starting to move forward,” said Jitendra Kumar of Sector 78, who had cleared the registry charges over and above the flat cost.

While hearing a case related to the Amrapali Group, the Supreme Court had on July 23, 2019, directed the Noida and Greater Noida Authorities to execute a tripartite agreement and facilitate registry of flats within a month. The realisation of the dues had to be done through sale of other properties. On June 10, 2020, the court asked the authorities to charge an 8% interest on the outstanding premium and other dues. The authority filed a review petition before the court while four real estate groups submitted a contempt petition against them.