Greater Noida authority to take over stuck housing projects

New Delhi: Greater Noida authority will take over stuck housing projects in the region to ensure timely delivery to homebuyers.

The authority said that the funds and companies are taking over such projects at low valuation and as a results homebuyers, lenders and even the authority has to take a haircut.

“We will inform the state government about our intent. We don’t have the manpower to complete the projects but we will outsource the construction once we take the the project through the National Company Law Tribunal (NCLT),” said Narendra Bhooshan, chief executive officer, Greater Noida authority.

As per the authority estimate, there are at least 36 realty firms who are facing insolvency proceedings and it has impacted nearly 50,000 homebuyers.

“This step of the state government and authority is very commendable. After going into liquidation of any real estate project, its valuation would be the most complicated part in which all the stakeholders would have a stake. If the authority doesn’t want to do its harm, then they will ensure to protect the interest of homebuyers too,” said Subodh Goel, Secretary, CREDAI Wester UP.

“But for the authority, constructing realty projects may detract them from other development works. In such a situation, it is expected that after a proper bidding and better resolution plan in NCLT, the authority may opt for a joint venture or private partnership or rope in some recognized institutions to complete the project and handover to the homebuyers,” Goel added.

The Greater Noida authority has to recover Rs 7,000 crore from developers and whenever a firm is dragged to NCLT, the authority has to take a major haircut to revive the project.