The Noida Authority has said that strict action will be taken against developers who have failed to adhere to the Uttar Pradesh government’s policy on stalled housing projects. Officials told the Hindustan Times newspaper that the authority plans to attach and auction the assets of defaulting builders and take other measures under the policy to ensure homebuyers can complete their property registration.

The Noida Authority has said that strict action will be taken against developers who have failed to adhere to the Uttar Pradesh government’s policy on stalled housing projects. (Photo for representational purposes only) (Sunil Ghosh/Hindustan Times)

There are hardly any developers left out of 57 who have used the provisions of the stuck projects policy properly to deliver justice to thousands of homebuyers. A total of 3,724 registries have taken place so far, and at least 5,758 apartments’ registries could not be done due to the realtors’ financial defaults in clearing land cost dues, they said.

“As most of the developers are not paying dues as per the rules of the UP government policy for stalled housing projects, the authority will take stern action as per the terms of the policy because there are some developers who paid partial dues out of the total dues and then failed to reply to notices. Some developers paid 25 per cent (%) amount and later did not pay the rest,” Noida authority’s chief executive officer (CEO) Lokesh M told the Hindustan Times newspaper.

“We will attach assets of the defaulter developers, auction the assets and also take other measures as per this policy’s provisions. Our objective is to ensure that the homebuyers get their registry done,” the CEO said.

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Under the Uttar Pradesh government policy introduced on December 21, 2023, developers of stalled housing projects were offered interest waivers if they paid 25% of their total dues upfront, with the remaining 75% payable over three years. The policy was designed to ensure that homebuyers could complete their property registration, officials said.

However, the authority now plans to withdraw interest waivers for developers who have failed to comply with the policy’s terms for “stalled legacy housing projects” in the city, officials added.

According to the Noida Authority, 10 housing projects have promoters who have not paid any land cost dues despite agreeing to do so. Additionally, 25 developers have paid partial dues, while 35 developers paid 25% of their total dues but failed to clear the remaining amount as per the policy terms, the newspaper report said.

Overall, there are 57 stalled housing projects in the city. Officials noted that property registration has been completed for 3,724 apartments, and if the remaining dues are paid by developers, registrations for an additional 5,758 apartments can be executed.

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“We have paid total money against our flat and thus we are unable to get the registry done of our flat due to the developer’s fault. The authority must do justice to thousands of homebuyers. They must recover their dues and pave the way for the registry,” the paper quoted Arun Kumar, a homebuyer, as saying.