GREATER NOIDA: Almost all real estate companies operating in Greater Noida have defaulted Rs 3,520 crore in dues against land allotted to them in 95 projects. Among the top 5 defaulters are Amrapali, Unitech and ATS.
The Greater Noida Industrial Development Authority has put up a list of all defaulters on its website, www.greaternoida.com. Department heads have been directed to issue notices to all defaulters to pay up or face action.
Land rate defaulters have been given an opportunity to pay only 25% of their dues by September 30 but the 1,376 defaulters in the residential scheme of GNIDA, who owe it a total of Rs 369 crore, cannot avail of this scheme and will be issued notices.
If the land defaulters fail to do this, they will have to pay a penal interest and also face lease cancellation of their property. Alternatively, they could be issued a recovery certificate, who will collect an additional 10% of the due. “Once the allottee pays 25%, the balance 75% of the outstanding amount will be collected in instalments in addition to a 12% interest fee,” GNIDA CEO Deepak Agarwal said.
“This is a special opportunity for the defaulting allottees to clear their dues. After this, we will take action and cancel the lease deeds, besides imposing penalties. We have had a meeting with builders as well as Credai on Thursday and most of them have agreed to go according to the plan,” Aggarwal said, adding the deadline will not be extended any further. “Lack of funds is causing a huge lull in pushing development projects on track. We cannot afford to disregard this issue any more,” Aggarwal said.
Credai president Getamber Anand, who is also CMD of ATS, said default by such a large number of players suggests only developers are not to be blamed but it is a systemic problem, which is also caused by the prevailing slump in the market.
Developers are claiming that the important reasons for default is the decision of Greater Noida Authority to levy the additional 62.5% compensation as increased compensation to farmers.
Anand, whose name is also in the defaulters’ list, said his project was allotted in 2005 and the fresh levy of 62.5% of the land cost came when he had sold a substantial number of flats. “Now, we can’t charge an additional amount from residents,” he said.
The other reason for the delay in payment by developers is the farmer agitation from 2011-2013. For a substantial period of time, land allotments were put in abeyance by the court. The GNIDA had assured developers it would not charge interest for the period in which construction was not allowed. But interest was levied later.
Going forward, it is learnt, GNIDA may allow existing allottees to form a joint development company with another partner to launch a new project in the portion of land of an ongoing project given to them but lying unused. The GNIDA. Officials said, could allow such a partner to join legally, which is not allowed at present.
Credits ET Realty