GDA May Allow Builders To Pay Dues In Installments
Cash-starved development bodies are devising new strategies to recover dues from India’s real estate developers, who have been adversely hit by a slowdown resulting in damaging of the health of real estate sector. The Noida Authority has, for instance, decided to come out with a list of “reliable” developers in order to dispel the negativity in the sector. Through this move, the authority aims to get buyers back to the market. This would also lead developers in a position where they would be able to pay their dues to the authority. About 94 developer owe the Noida authority Rs 20,000 crore. The Noida District Administration also plans to launch a drive under which it would auction the assets of defaulters, including property holders, to recover dues to the tune of Rs 227 crore.
The Ghaziabad Development Authority (GDA), too, is leaving no stone unturned to recover dues. While it has already recovered about Rs 400 crore since October last year through issuance of recovery certificates from real estate developers, it has devised a new plan to recover an equal amount from them now. The GDA is likely to move a proposal later this month to allow defaulters pay dues in installments. (Till December last year, recovery certificates to 70 developers were issued. However, some of them moved courts to seek relief, challenging the calculation.)
However, there is a catch. Not all developers will benefit from this move since it is not a policy decision and benefits will be offered to builders after studying their capability and intent to pay. “The payment in installment will be allowed up to a limit,” says GDA Vice-Chairman Ritu Maheshwari.