Noida Authority To Make Public List Of Reliable Builders

Noida Authority To Make Public List Of Reliable Builders

Noida Authority To Make Public List Of Reliable Builders
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A laggard approach of the authority could well be cited a reason for the crumbling infrastructure in Noida, but one can hardly overlook the role money crunch is playing here. Various public projects in the national capital region’s information technology hub are stuck, and their fate is closely linked with the fate of real estate projects in the city that has been “under construction” for a long time now. Cash starvation is the root cause of the problem here. Cash-starved builders are not able to pay dues to the authority impacting the progress of infrastructure projects.  

However, the Noida Authority is seen trying every trick in the book to recover over Rs 20,000 crore from 94 developers who have failed to deliver their projects, and who have in turn not been able to pay their dues to the said authority.  Between May 7 and May 12, the authority would issue a list of “reliable” developers in order to dispel “negativity” in Noida’s real estate sector.

After auditing the account of about 51 builders, the Noida authority will now make public names of “reliable” developers who have not engaged in any diverting of funds, and who will be able to complete their projects in the near future. By bridging the trust deficit between the buyers and the developers, such a move would encourage fence-sitters to get back to the market, the authority expects.

The process to audit builders’ accounts started in November last year, following a directive by Uttar Pradesh Chief Minister Yogi Adityanath. About 78,000 homebuyers who have invested money in 94 projects have yet to get their homes. Since Noida property market has seen little activity in the past, developers have also failed to pay their dues to the authority. The Noida Authority takes only 10 per cent of the land value from builders at the time of plot allotment. The remaining land value is paid in installments over a specified period.

“We do not want to spread negativity because it will not help the real estate sector,” Noida Authority Office on Special Duty Santosh Kumar was quoted in a Hindustan Times report as saying.

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