Noida: Over Rs 250 crore sops offered to 16 builders of incomplete projects

NOIDA: As many as 16 real estate developers in the city who have failed to finish projects in time due to the Covid pandemic will be offered sops worth over Rs 250 crore, officials said on Friday.

While the Noida Authority will forgo penalty from these delayed projects under the time-extension policy, the move will benefit more than 22,000 buyers who have been waiting to get possession of their dream homes.

Of those who had applied for exemption under the policy, officials said, 16 developers , including the Supertech group have been found eligible, and the Authority will dole out benefits to the tune of Rs 263.36 crore for them.

On an average, a developer will get a rebate of Rs 16.46 crore over their dues and should be in a position to pass on the benefits to 22,064 buyers who have been waiting for the past eight to nine years in the hope of getting possession.

The benefits come with a rider though. “Builders will need to complete these projects and hand over flats latest by December 31, 2021. In case they are unable to finish the project by then, the exemption will be rolled back and we will recover the amount,” said Rajesh Kumar, OSD to Noida Authority.

The UP government had floated the zero-period policy in December last year and asked the Noida Authority to identify projects that got stuck due to regulatory roadblocks. Some 39 developers applied for it ,out of which pleas of 16 developers were found genuine.

The Authority will not levy time-extension charges for a period of 18 months to 24 months on these developers. Finance controller at Noida Authority, Sudhir Singh, said that the said amount will be adjusted in the books.

However, realtors’ body Naredco’s UP unit president RK Arora, also the chairman of Supertech Group, said, “Our project in Sector 74, Capetown, has been selected. Some 70% of the entire project is complete at the moment. But the Authority has calculated time extension due on the entire project instead of considering only the incomplete portion.”