Supertech to Seek Rs 1,500 Cr From Govt's Stress Fund To Complete 12 Projects
Real estate developer Supertech would ask the government to issue Rs 1,500 crore from its recently announced Rs 25,000-crore alternative investment fund (AIF) to complete nearly 20,000 housing units in the Noida-Greater Noida market. Spread across 12 projects, these housing units, says the company, are in the final stages of construction and meet the criterion set to receive funds from the AIF.
Noida Authority Issues Recovery Certificate To Supertech Over Non-Payment Of Dues
In its latest move against defaulting builders with pending dues, the Noida Authority has issued a recovery certificate of Rs 293 crores against Noida-based builder, Supertech over non-payment of dues. The action has been taken, in connection with pending dues for a group housing project, Supertech Cape Town in Sector 74.
Supertech, however, has said that they will appeal against the order. "For the last three years, we have been appealing to the government and the Noida Authority for the promised waiver but we have only got assurances. We will appeal against this RC order now," Supertech chairman RK Arora said. According to the Noida Authority officials, "The RC was issued on October 22, 2019 and includes a principal amount of Rs 253 crores and Rs 40 crores interest."
Earlier, the Noida Authority on September 19, 2019 had cancelled the lease of city-based Dwelling Star Developers over non-payment of dues totaling over Rs 157 crores. The action was taken after the builder ignored continuous reminders and multiple recovery notices that were being served by the Authority since November 2017. The property was located at Sector 98, Sports City.
The Noida Authority chief executive officer Ritu Maheshwari had called for a review of major defaulters and initiation of action against them. "During an ongoing review, it was found that Dwelling Star Developers is among the major defaulters… multiple notices and reminders were issued in 2017 and 2019, after which it was decided today that the developers lease should be cancelled," a Noida Authority official said.
Noida Administration To Auction Property Of Builders To Recover Dues
Real estate developers in Noida who owe money to the city authority and the administration stand to lose their assets with the Gautam Budh Nagar Administration deciding to auction them to recover dues. In a drive that would be launched on May 15, the city administration would go after individuals and contractors also as it attempts to recover dues to the tune of Rs 227 crore. While several individual defaulters have taken loans from government banks and have stopped repaying them, many contractors have failed to pay dues. Properties of as many as 40 defaulters will be auctioned in the beginning.
This is for the first time that the Noida administration has decided to take such a strict action against defaulters. As the drill goes, a recovery certificate would first be issued, after which the auctioning of assets would take place.
According to media reports, several real estate developers who have projects in the city have not paid the city administration labour cess despite several notices. It is worth mentioning here that one per cent of the total project has to be paid by builders as labour cess. The collected fund is used for welfare of construction workers. Incidentally, the Supreme Court on May 1 blasted the Centre over its failure to use the funds so collected for the welfare of the construction workers. Official data show more over Rs 37,400 crore had been collected for the benefit of construction workers across the country. However, only about Rs 9,500 crore of the fund has been used.
The Noida Authority, which is at loss to recover from real estate developers dues of up to Rs 20,000 crore, might also resort to the same measure, media reports indicate. For that, it might seek the assitance of the district administration.
“If the Noida Authority writes to us, we will help them,” District Magistrate BN Singh was quoted in a Hindustan Times report.
With inputs from Housing.com News