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Noida: The Noida And Greater Noida Officials are considering the co-developer policy as a one stop solution to two major problems – completion of incomplete housing projects due to paucity of funds and recovery of its dues.
Companies will be allowed to invest money in a project and complete them under the policy, instead of realtors entering into co-developing agreements on their own, which has happened for some of the stuck projects in the city.
However, the new firms will have to shoulder the responsibility of clearing land dues of around Rs 40,000 crore. The policy is expected to benefit lakhs of homebuyers who have been waiting for the registry of their houses or their flats for almost a decade.
Ritu MaheshwariThe CEOs of the two authorities said the co-developer policy was proposed by the builders’ body, the Confederation of Real Estate Developers Association of India (CREDAI), while seeking a resolution to the impasse over land premium dues.
“The authorities are working on some policies, including the co-developer policy, which will allow new developers to take over commercially viable incomplete projects and deliver them,” Maheshwari said.
However, the new developers will have to ensure that the dues of the authorities are cleared on a priority basis. “If the developers promise to clear the dues, we will think of giving them incentives,” he said.
If implemented, the policy will bring more relief Greater Noida complexes as compared to their Noida counterparts, as they are nearing completion.
Notably, a co-developer policy was introduced in 2017 but failed to take off due to issues related to land dues.
CREDAI (NCR) secretary Gaurav Gupta said they have urged the state government to introduce revised policies to not only allow co-developers to complete stuck projects but also to rationalize land dues.
“Unless this is done, no promoter will go ahead. The dues being demanded by the authorities should be rationalised. Only those projects can be considered viable which have sale proceeds more than the project cost. The authorities should It will also need to ensure timely provision of necessary approvals to assist new developers in completing projects on time,” Gupta said.
Builders owe the authorities more than Rs 39,500 crore, with most of the projects started nearly a decade ago not being completed on time.
According to CREDAI, bringing in new promoters to complete unfinished projects is not a new thing. “There are many projects where co-developers have been brought in to complete the projects in Noida. But the present scenario is different as we are demanding a policy to complete the stalled projects. Necessary approvals will need to be obtained to start with.” The projects, in terms of funding, will be opened only after their permission,” said Gupta, who is also the director of SG Estates.
To recover the dues, the authorities have started sealing and canceling unsold inventory. But this did not serve the purpose as third party rights have been created in most of the cases. Earlier this year, the authority came out with a rescheduling policy, under which builders could pay the dues in four installments over a period of two years. Developers of 20 group housing projects in Greater Noida applied for the policy, while only 10 applied in Noida.
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