Noida, G Noida plan new scheme for co-developers to revive stalled projects

The authorities of Noida and Greater Noida plan to launch a scheme in which co-developers will inject funds and restart stalled housing projects in the twin cities to address the grievances of thousands of homebuyers, officials familiar with the development said on Wednesday.

The move comes after the Confederation of Real Estate Developers Association of India (Credai), a builders’ lobbying group, wrote to the authorities requesting this scheme to address the issue of delayed projects in Noida and Greater Noida and resolve the problems of as many as 300,000 homebuyers.

“After receiving their proposal, we decided to work out the idea of allowing co-developers to develop projects that have been left incomplete or have been delayed owing to a fund crisis. We are considering a proposal that would allow a new developer to take over the delayed project if the new developer is willing to pay the land costs owed to us,” said Ritu Maheshwari, chief executive officer of the Noida and Greater Noida authorities.

There are approximately 90 delayed projects in Noida and 100 delayed projects in Greater Noida, affecting the interests of approximately 300,000 homebuyers who cannot register their respective flats. The realtors failed to complete their projects, some which of have been delayed by up to 10 years for want of funds, Maheshwari added.

“We proposed the idea of a co-developer to the authorities because many real estate projects are 50-70% complete, and the remaining work is not being completed for want of funds with the old developers. Around 200 real estate projects in two cities require last-mile funding. If a new developer is willing to infuse funds, complete the project, and deliver it to homebuyers, it can resolve a long-standing issue,” said Nikhil Havelia, secretary of Credai.

Most developers whose projects are stalled were granted group housing land between 2008 and 2010 and were supposed to deliver flats by 2012-13. However, the Noida and Greater Noida authorities provided them with housing land on an instalment basis, and they could make the land cost payments. With clearing dues, the authorities are not allowing registries even in completed projects.

The Noida authorities want a new developer or co-developer to inject funds, pay land costs, and complete the stalled projects. However, Credai believes new developers should not be asked to pay land cost dues.

“The co-developer can only inject funds to bring the projects back to life. If the authority forces new developers to pay land cost dues, they will be hesitant to take up stalled projects,” said Gaurav Gupta, secretary of Credai’s Delhi-NCR (National Capital Region) chapter.