NOIDA: The Noida Authority has begun placing boards outside housing projects where promoters have not cleared significant land dues and have not applied for the government’s rehabilitation scheme.
Images of these boards are being shared on the Authority’s website as part of a strategy aimed at resolving issues with certain builders. The initial board has been set up outside Lotus Panache, a project by Granite Gate Properties currently under insolvency proceedings at the National Company Law Tribunal (NCLT).
This initiative has faced strong opposition from residents who argue it breaches the moratorium imposed during the corporate insolvency resolution process (CIRP) and jeopardizes their efforts to revive the project.
“We are investing our own money to revitalize this project through the NCLT process. The Authority’s actions will harm buyer confidence and could reverse our progress. We will notify the NCLT about this issue,” stated Amit Chauhan, a resident of Lotus Panache. Noida Authority CEO Lokesh M emphasized that the boards serve solely as informational notices.
“Our intent is to inform the public of the dues owed by these defaulting projects. The boards are positioned on government land and only disclose amounts claimed before the tribunal. There is nothing unlawful about this,” he said.
Furthermore, a similar campaign last year of displaying boards outside defaulting projects prompted several promoters to settle their dues, which is a precedent the Authority hopes to replicate.
This action is part of the Authority’s renewed efforts to recover outstanding dues under the Legacy Stalled Real Estate Projects Policy implemented by the UP government in December 2023. This policy, based on the Amitabh Kant Committee’s recommendations, aims to address defaults via ‘zero period’ waivers and revitalize incomplete projects that have left numerous homebuyers in uncertainty.
During a board meeting on October 3, the Authority assessed the progress of this policy’s implementation. Out of 57 eligible projects (excluding Amrapali, Unitech, and those under NCLT), 35 developers have utilized the scheme, contributing Rs 528 crore—approximately 25% of their recalculated dues considering the Covid ‘zero period.’ Additionally, 13 builders made partial payments totaling Rs 28 crore, allowing the Authority to unlock 3,724 flat registrations from 5,758 eligible units, achieving a progress rate of about 65%.
However, 22 developers have either failed to pay their recalculated dues or have ignored multiple notices from the Authority. These projects now face a range of enforcement actions, including plot cancellations, sealing of unsold units, recovery as land revenue, and potential referrals to the economic offences wing.
“The government has extended every possible concession to these developers, including zero-period benefits and equitable recalculation of dues. Yet, several have shown no intention to comply. We will proceed strictly per the regulations,” remarked Lokesh M.
Prior to erecting the boards, the Authority issued notices to the 22 non-compliant developers. Some have approached the Allahabad High Court and the state government under Section 41(3) of the UP Urban Planning and Development Act seeking leniency.
Nonetheless, the Authority has made it clear that no extensions will be granted. “The purpose of the 2023 rehabilitation policy is to facilitate project completion and provide relief to homebuyers, not to permit endless delays,” stated the CEO.
To ensure that homebuyers in compliant projects can register their flats promptly, the Authority will continue conducting registry camps and follow-up drives.
