Builders asked to ready payment plan for Noida & Greater Noida authorities

NOIDA: A meeting among officials of the Noida and Greater Noida authorities, private developers and homebuyers was held on Thursday to discuss the stalemate over delayed registry of flats.

The meeting was chaired by Sanjiv Kumar Mittal, the infrastructure and industrial development commissioner in the state.

At the meeting, the developers representing Credai and Naredco were asked to submit a fresh payment plan to the two authorities. The issue of delayed registry of flats has been moving back and forth between the stakeholders for quite some time. Thursday’s was the third meeting to end the stalemate in the last seven months.

The impasse is over the rate of interest the developers are being charged by the two authorities for delayed payments. While the authorities have decided on an 11% interest, compounded every six months, the builders are unwilling to pay the amount.

As a result, the authorities have held back the registry of flats, and it is the buyers who are bearing the brunt. The case has reached the Supreme Court.

“While the Supreme Court verdict with regard to the payment of interest is awaited, we are going to formulate a policy after taking legal opinion. Developers have been asked to come up with a payment plan in the meantime,” Mittal said.

In the coming days, the developers will submit a fresh payment plan to the authorities. “They have not accepted our previous representations. But we have got an assurance from the commissioner about a resolution soon,” said RK Arora, president of UP Naredco.

Officials said the builders would calculate the land premium and interest separately. The land premium will be calculated with regard to the time of allotment while the interest component will be at the rate of 8% simple interest.

Until the Supreme Court announces the verdict on the rate of interest, the developers have asked Mittal to allow the registry of flats in proportion to the amount they pay. Buyers, who have been stuck for years, said the state government should intervene now. “For the past one year and a half, we have been hearing about some solution. But nothing has moved on the ground. Nobody has shown any conviction in resolving the problem,” said Dinbandhu Nayak, a buyer of a flat in Civitech Stadia in Sector 79.