Private builders in Noida to clear dues to put full stop to stalemate over registries

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Noida: The builders declared that they will be making direct payments to the development authorities in Noida, Greater Noida and Yamuna Expressway in order to put a full stop to the stalemate over registries, said a newspaper report. 

The developers have come up with an estimate which suggests that more than 50,000 buyers are looking forward to getting their properties registered in the district. The buyers have invested in about 385 group housing projects which are cleared by the three aforementioned authorities. 

However, in the absence of a payment scheme by the authorities, the builders in the district are not able to clear their dues and the registration process is on hold. 

A meeting took place between a delegation of builders and the chief executive officer of the Noida Authority on Monday (March 15). The decision to begin the clearance of dues was taken in this meeting. The developers stated that they would initiate the calculation of their dues in keeping with the lending rate based on the State Bank of India's marginal cost of funds. 

Ritu Maheshwari, CEO, Noida Authority told TOI, "The builders will have to give an undertaking that the provisional payment is being made for now to expedite the registry process. The final amount will be decided and settled according to the directions of the Supreme Court."

The Supreme Court is scheduled to hear on March 22 a contempt plea filed by private developers on the way their dues and interest rate are being calculated and a review petition submitted by the Noida Authority. Depending upon the tenure of the debt, sources said the total amount that each builder should pay to the respective authorities could get slashed in the range of 10 per cent to 40 per cent. 

Builders, on the other hand, have been relieved by this. RK Arora, the president of NAREDCO (UP) told a national daily, "The Authority has agreed to take payments in parts in keeping with the SBI MCLR. A message has been sent to all our members to come forward and get the registry of the flats done without further delay."

The Supreme Court on July 23, 2019, while hearing the Amrapali Group case, directed Noida and Greater Noida authorities to form a tripartite agreement and facilitate registry of the flats in a month. The realisation of the dues had to be done through the sale of other properties. On June 10, 2020, the apex court asked the authorities to charge an eight per cent interest on the outstanding premium and other dues. Four real estate groups filed a contempt petition against the review petition filed by the authorities. 

(With inputs from TOI)