Noida authorities clear exit policy for sick projects

With the intention to address issues concerning the realty sector, including delayed and sick projects, three authorities - Noida, Greater Noida and Yamuna Expressway - in their board meeting on Friday approved ‘project settlement policy’.

Under this policy, the builders will be able to exit from a housing or commercial project if they have not started construction on the land allotted to them by the three authorities. Uttar Pradesh principal secretary (industries) and chairman of Noida Authority Rama Raman told The Hindu that the decision has been taken after considering slowdown in the realty sector, which further resulted delay in projects’ delivery.

Earlier in May, the three authorities had approved an ‘exit policy’ to allow builders to exit from sick projects. But the Uttar Pradesh government had rejected the proposal saying that the policy was unable to address multiple issues realty sector was facing.

“Following UP government’s order, the three authorities formed a 13-member committee that framed ‘project settlement policy’. It covers all issues pertaining to the ongoing crisis in realty sector. Now we will send it to the government for final approval so that we can implement it on the ground,” said Mr. Raman. There are four types of project delay. One where the builder has completed civil work but is unable to finish the project and obtain occupancy certificate. Second where the buyers have invested in a project but the builder has not started construction at all. Third kind is builder halting construction mid-way. Fourth issue is buyer living in a complex, but unable to execute registry.

There are about 190 real estate projects going on in Noida. Of them, 60 are in the payment defaulter category affecting nearly 1 lakh buyers. While there are 95 ongoing projects in Greater Noida, around 80 projects are stuck, affecting around 1 lakh buyers. In Yamuna E-way authority area, 20 builders have failed to complete projects in time due to dip in sale of flats. Around 20,000 home-buyers’ investment is at stake there.