For faster delivery of flats, Noida authority relaxes payment rules for builders

  • Noida
  • 24/08/2017
For faster delivery of flats, Noida authority relaxes payment rules for builders
The Noida Authority on Thursday relaxed the terms for issuing occupancy certificates to select stuck housing projects that fulfil certain conditions, a move that could benefit around 20,000 homebuyers.

The new policy is for only those housing projects, where the builder has developed common facilities such as fire systems, lifts, water supply, community centre, sewage treatment plant, etc.

Now, a builder can deposit 10 per cent of the total land dues and get registry of flats executed by paying the remaining dues flat wise.

The authority has made the changes because many builders were not able to clear land dues. The authority hopes the relaxation would enable builders to deliver flats early as payment would be staggered.

For example, if a builder owes Rs 100 crore to Noida Authority against a housing project that has 1,000 flats, he would have to pay Rs 10 crore to offer possession and execute registry.

Against this payment, the authority will issue a temporary occupancy certificate for half of the project, i.e. for 500 flats. (The total land dues of Rs 100 crore will be distributed among 1,000 flats -- Rs 10 lakh per housing unit.)

But the builder will also have to pay 65 per cent of the share per unit. For example, if he wants to offer possession to one buyer in 500 ready flats and also execute the registry, the builder will have to pay R16.5 lakh for each flat. The new policy allows the builder to clear dues in small installments as and when he delivers a flat, said Amit Mohan Prasad, chief executive officer of the Noida authority.

According to the earlier rules, the builders had to pay tower wise dues. For example, if a builder owed Rs 100 crore land dues for a building with 1,000 flats in 10 towers, he was supposed to deposit R10 crore per tower. It means for five towers, the builder was supposed to deposit R50 crore to deliver flats to buyers.

Now the builder will have to deposit Rs 10 crore for 10 towers along with per flat dues. It will help them manage with small amount of funds. Our aim is to deliver flats to aggrieved buyers, said Prasad.

According to the authority, there are 76 ongoing housing projects in Noida, out of which 39 are in the process of getting occupancy certificates.

We have rejected occupancy certificate applications of 16 projects because these did not have common facilities. Our new policy will be effective from September 1 to November 30. The rejected project owners can develop facilities and apply afresh to obtain the certificates, he said.

We are processing OC applications of 23 housing projects. If common facilities are developed then we will start getting registry executed and give relief to around 20,000 buyers, said Prasad.

This scheme will enable buyers to get possession of houses that are complete but could not be given to customers due to heavy land dues. We thank the officers for providing a solution to break the deadlock between customers and developers. We also request the Greater Noida authority to come up with a similar scheme, said Getambar Anand, CMD, ATS Builders and president of confederation of real estate developers association of India (CREDAI), a realtors body.
  
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