The Noida Authority has recently served notices to 13 real estate developers, demanding proposals within 15 days for the resettlement of dues amounting to over Rs 8,510.69 crore. This significant move is part of a broader effort to address the distress faced by homebuyers due to legacy stalled real estate projects.
According to official documents, the 13 developers owe substantial amounts in interest and penalties to the Noida Authority. Among the developers, ATS, Supertech, and Logix group companies hold the highest share of dues, totaling Rs 7,786.06 crore, which accounts for 91.48% of the total amount owed. Specifically, ATS Homes owes Rs 640.46 crore, ATS Infratech Rs 697.76 crore, and ATS Heights a staggering Rs 2,129.88 crore. Supertech Realtors and Supertech Ltd collectively owe Rs 3,204.72 crore, while Logix Infrastructure Pvt Ltd and Logix City Developers owe Rs 1,113.24 crore.
Other developers on the list include Three C, Celerity Infrastructure, Elicit Realtech, Explicit Estates, and Abet Buildcon, with dues ranging from Rs 27.67 crore to Rs 572.51 crore.
The notices are issued in alignment with an order from the Uttar Pradesh government concerning legacy stalled real estate projects. This order, issued on December 21, 2023, includes waivers on interest and penalties for developers as part of a campaign to alleviate homebuyers' distress. The order also allows certain group housing projects under NCLT or court jurisdiction to benefit from this package if they withdraw or conclude their cases from NCLT and court.
Implications for Homebuyers and the Real Estate Market:
This move by the Noida Authority is expected to have a significant impact on the real estate market and homebuyers. Clearing the dues would pave the way for the registration of flats in the names of homebuyers, granting them ownership rights. This step is crucial in resolving long-standing issues of pending registries and delayed possession of flats in Noida and Greater Noida.
For homebuyers, this development is a positive step towards owning their homes and ending the distress caused by stalled projects. For the real estate market, it signals a potential revival and stabilization as developers work towards clearing their dues and fulfilling their commitments.
Strategies for Developers:
For developers, this notice is a call to action. They must quickly formulate and present their proposals for the settlement of dues to avail the benefits of the UP government's policy. Engaging in transparent communication with the Noida Authority and homebuyers will be essential in regaining trust and moving forward with stalled projects.
Conclusion:
The Noida Authority's recent action of issuing notices to 13 developers for dues worth over Rs 8,510.69 crore marks a significant step towards resolving the issues plaguing the real estate market. It underscores the importance of compliance and accountability among developers and offers hope for homebuyers awaiting the completion and registration of their flats.
Investors and stakeholders in the Noida real estate market should closely monitor these developments, as they are likely to influence market dynamics and future investments. The realty fair continues to provide in-depth coverage and updates on this evolving story.
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