NOIDA: The Greater Noida Industrial Development Authority (GNIDA) has authorized partial occupancy certificates for various stalled housing projects under the UP government’s rehabilitation policy, following the Kant committee’s recommendations aimed at reviving stalled real estate developments.
So far, developers of 37 out of 98 halted projects in Greater Noida have paid 25% of their total dues, the minimum requirement to qualify for policy benefits, which include debt rescheduling and a waiver for defaults during the Covid pandemic.
Under this new policy, developers who have made partial payments will receive occupancy and completion certificates (OCs/CCs) proportional to their payments, enabling the handover of a corresponding number of completed units. For instance, if a developer pays 50% of their dues, they will obtain OCs/CCs for 50% of the units.
This decision is set to expedite the process for many homebuyers, as Greater Noida has the highest number of stalled projects in the nation. Together with Noida, it accounts for a significant portion of stalled developments, prompting the Centre to establish a committee headed by former Niti Aayog CEO Amitabh Kant for a resolution. The relief package was announced by the UP government in December 2023.
Absent OCs/CCs, developers were unable to demand final payments from buyers, complete property registrations, or hand over flats. This situation left numerous completed homes locked due to builder defaults, forcing buyers to pay both EMIs and rent while unable to take possession.
Dinesh Gupta, secretary of Credai West UP, remarked that once OCs are issued by GNIDA, developers will be able to finalize outstanding payment demands from flat allottees. The recovery of dues from buyers will facilitate payment channels for settling subsequent installments to authorities or through construction finance lenders.
The final OC/CC will only be issued after complete payment. Credai, a realtors’ association, proposed provisional OCs valid for 90 to 120 days, with developers providing undertakings to ensure compliance with payment policies for the remaining 75% dues.
Gupta termed the policy approval a “win-win” for all parties involved, asserting it would hasten registrations, improve recovery of dues, and rejuvenate cash flow in the Noida-Greater Noida real estate sector. The GNIDA board approved the proposal on July 28, with additional CEO Saumya Srivastava confirming the decision was made in favor of homebuyers.
The December 2023 policy is applicable to 98 stalled projects, excluding those monitored by the Supreme Court, such as Amrapali and Unitech, as well as projects in bankruptcy proceedings at the National Company Law Tribunal (NCLT). Among these, 77 projects opted for the rehabilitation policy, while 21 did not meet the 25% payment requirement.
These 77 projects encompass 85,242 sanctioned flats. Notably, 13 projects had their dues reduced to zero following recalculation, and 27 cleared all dues, permitting the registration of their flats. The remainder has made the initial 25% payment.
So far, the policy has generated ₹1,352 crore for GNIDA, with an additional ₹1,680 crore projected for the upcoming year. Across the 77 projects, CCs have been issued for 45,774 flats, while work is ongoing for 39,468. To date, 40,107 flats have been registered, with 16,294 completed since the policy’s inception.
Out of the 21 projects that did not join the scheme, 19 are entangled in legal disputes while recovery certificates have been issued against two projects for dues recovery.
