NOIDA: Developers are calling on the UP government to establish a rehabilitation policy akin to that of stalled group housing projects, in order to break the deadlock surrounding Sports City. This request is based on the recommendations from the Amitabh Kant committee.
The builders propose to settle their recalculated dues by paying 25% within 60 days and the remainder over a three-year period.
This appeal is particularly significant as over 8,000 residents currently occupy homes in Sports City across sectors 78, 79, and 150, with another 20,000 awaiting possession. Credai (Western UP), representing builders, emphasized that although Sports City developments are on par with other projects, they have not been included in the state’s rehabilitation policy.
The issue of dues for Sports City projects gained attention after the Allahabad High Court ordered investigations by the CBI and ED in February, and mandated the Noida Authority to issue recovery notices to developers. Although the builders obtained a temporary stay from the Supreme Court against coercive measures, updates from the court allowed the Authority to continue with the recovery.
In response, the Authority sent fresh notices to the delinquent developers earlier this month. Subsequently, one consortium partner involved in a Sector 150 Sports City project, led by Lotus Green Constructions, paid Rs 80 crore towards its dues.
In Credai’s letter dated August 1 to chief secretary SP Goyal, the organization contended that the Authority should not have issued new recovery notices without first addressing ongoing issues, given that the matter remains under Supreme Court review.
The letter also pointed out several discrepancies in the calculation of dues. The developers argue that interest rates should align with the marginal cost of funds-based lending rate (MCLR) as per government directives. They also raised concerns regarding the application of commercial rates for time extension charges, highlighting that only 0.5% of the land use is for commercial purposes.
Credai identified additional contentious issues, including double imposition of farmer compensation and inconsistent application of zero period benefits. While some projects benefitted from waivers until 2017, others were denied similar concessions, they claimed.
The developers further noted delays in map revalidation and the issuance of occupancy certificates, which have hampered home registrations and loan disbursals.
“Due to the delays in approvals, unresolved land dues, and the ongoing development ban, many projects are becoming financially unfeasible and are edging towards bankruptcy,” the letter stated, emphasizing the negative impact of these delays on both homebuyers and the state’s stamp duty revenue.
