NOIDA: The Greater Noida Industrial Development Authority (GNIDA) has opted to issue partial occupancy and completion certificates to developers who have made advance payments in line with the UP government’s rehabilitation policy for stalled projects. This decision, announced on Tuesday, aims to provide immediate relief to countless buyers awaiting their flats for years and to developers grappling with project completion due to financial and bureaucratic obstacles.
According to the new order, developers who have paid at least 25% of their recalculated dues—considering the two-year grace period granted during the Covid pandemic—and have made additional payments towards the remaining 75%, will be eligible for certificates proportionate to their payments. For instance, if a developer has settled 40% of their total dues, they will receive occupancy certificates for 40% of the project’s units. This change intends to facilitate possession for homebuyers whose flats are finished but stuck due to procedural hurdles.
This order follows the Authority’s 140th board meeting held in July, addressing a longstanding issue. Under the state government’s rehabilitation policy introduced in December 2023, developers were expected to pay 25% of recalculated dues upfront and the remainder in installments.
Once the initial payment was made, developers received a no dues certificate (NDC), allowing them to continue construction and apply for completion. However, delays in obtaining NOCs from various departments—such as fire safety, environment, water, electricity, planning, and architecture—often extended beyond six months. This delay led to missed deadlines for subsequent payments, complicating the situation as planning departments would require a new NDC to process occupancy applications. If further payments were incomplete, the builder’s department couldn’t issue a new NDC, obstructing the issuance of completion certificates and delaying home delivery to buyers—even when construction was nearing completion.
The Confederation of Real Estate Developers’ Associations of India (CREDAI) for NCR and Western UP chapters highlighted this predicament in their representation to the Authority. Dinesh Gupta, president of Credai Western UP, emphasized the need for action on May 25, stating that the refusal to issue new NDCs until full payment of subsequent installments blocked the legal possession for homebuyers.
Furthermore, Credai warned that continued delays could negatively impact the real estate market and government revenues. “Non-registration of tripartite sub-lease deeds would severely affect further investments in the Noida and Greater Noida region, causing revenue losses for both the Authorities and state and central governments,” their letter noted.
The association proposed enabling sub-lease registration and possession relative to the dues paid, and recommended temporary occupancy certificates valid for 90 to 120 days to help developers generate funds from homebuyers for outstanding dues.
Authorities stated that the decision strikes a balance between the interests of homebuyers and developers while ensuring financial recovery for the Authority.
