Unitech projects get SC push as Noida authority asked not to insist on dues, Real Estate News, ET Real Estate

NoidaAround 6,000 homebuyers in various projects of : unitech group waiting for their flats and villas hope Supreme Courtis directing the latest order of Noida Authority To approve revised layouts of the beleaguered real estate company’s 10 projects in the city without insisting on an upfront payment of about Rs 10,000 crore.

The revised layout, with a focus on utilizing unused land parcels, will provide the new Unitech Board with the capital it needs to complete projects in Sectors 96, 97, 98, 113 and 117, homebuyers hope.

The February 1 SC order said, “Having regard to the contents of the facilitation note submitted by the Additional Solicitor General, it is clear that a substantial number of home buyers have now expressed their confidence in the proposed construction in the aforesaid areas. At this stage, it would be appropriate if NOIDA processes applications for approval of Revised Layout Plans, Building Plans and Ancillary Approvals without insisting on advance payment of dues. However, Unitech’s Board will charge the present application fee/scrutiny fee payable in law shall pay.”

The order further states that the decision on the dues will be taken after hearing the Noida Authority and the Board and another matter is being heard in the apex court.

The new Unitech board, represented by Additional Solicitor General N Venkataraman, had told the Supreme Court on February 1 that the company would be in a position to upload applications for approval of revised layout plans, building plans/modified building plans and other statutory applications within seven days. Was. working day and also pay the current application fee.

Unitech has three ongoing projects (Amber, Burgundy and Willow 1&2) Unitech Golf & Country Club Over 347 acres in Sector 96, 97 & 98. The developer launched Amber in 2007, Willow in 2008 and Burgundy in 2010 with delivery dates from 2012. Out of 1,091 units launched in these three projects, 958 were sold. There are six ongoing projects in Sector 117 and one in Sector 113.

Unitech Board has proposed to construct new towers in undeveloped areas of the land parcel to generate capital and resources to complete the projects.
Sanjeev Sood, President, Homebuyers’ Association, Amber, said, “Buyers who have paid up to 95% of the total amount and have been waiting for the delivery of their flats for the past decade will definitely benefit from the latest order. Since There is no money, the board has come up with a revised layout that will utilize unused land and monetize the projects. We have been fighting the cases in various courts and forums since 2013, and the latest order is the way forward.”

Saurabh Agarwal, treasurer of the Burgundy Welfare Association, said the order is similar to another order passed by the Supreme Court SC last year for 26 projects in Haryana, in which it directed the city and country’s state department to plan for renovation Was. “The Noida Authority did not take any action when the developer defaulted on the dues. If the authority insists on payment of dues then the projects are not viable. It should be cleared at the earliest as we look forward to resumption of construction at the earliest.” And expect eventual possession.” of our flats. ,

“The UP-RERA rules mandate consent from two-thirds of the home buyers to make any modification in the layout plan. In this case, the response has been overwhelming, which means home buyers have reposed their faith in Unitech Board and its plan ,” They said.

Vivek Tyagi, president of the All India Association of Unitech Homebuyers, said the Supreme Court should also consider the concerns of homebuyers who want refunds. “80% of homebuyers are waiting for construction of houses, but refund should also be given to those 20% whose status has changed due to death, illness, relocation, retirement or other difficulties in life.”

Tyagi suggested that the board may rope in RWAs or buyer associations of each project for construction quality assurance. “Payment should be linked to construction. Escrow accounts should be opened for each project,” he added.

According to the resolution framework prepared by the board and submitted to the Supreme Court in July last year, the proposed plotted development of the Noida land parcel would fetch Rs 5,641 crore. The cost of completing the existing projects is around Rs 1,800 crore.

About 343 acres of land is under possession of Unitech in Sectors 96, 97 and 98. Out of these 343 acres, 155 acres are used. Of the 35 acres in Sector 113, 17.5 acres has been utilised. In Sector 117, out of 65 acres of land, 16 acres is unusable.