Builders whose projects are nearing completion are in a hurry to get occupancy certificates so that these are not governed by the new Real Estate Regulatory Rules (RERA), which are likely to be effective from May 1.
According to Uttar Pradesh government officials, there are over 200 developers in Noida and Greater Noida who are yet to obtain occupancy certificates.
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‘Faulty scheme’
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During the BSP regime, plots were allotted to the developers after they deposited 10% of the total cost of the land to the Noida or the Greater Noida Authority. However, they are yet to pay the remaining amount, without which they are not entitled to the occupancy certificate. Officials said the builders owed roughly ₹10,000 crore to the two authorities.
“The scheme of allotting land after receiving 10% of the total cost was faulty. Further, the Noida Authority rescheduled payment plans, which benefited private players, but led to a rise in the number of defaulters,” said an official, who didn’t wish to be named.
“Now, many developers are trying to get the occupancy certificate as they fear RERA would lead to financial loss and delay in the projects,” the official added.
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Word of assurance
Noida and Greater Noida Industrial Development Authority CEO Deepak Agarwal told The Hindu , “We will ensure that the entire outstanding amount is deposited by the developers before issuing them occupancy certificates.”