Greater Noida authority (GNIDA) has issued notices on Sunday to 99 defaulting developers and more than 1,000 individual plot allottees, who have failed to clear dues.
Authority has sold group housing land to developers for residential projects on installment basis. Developers had paid 10 percent of the total land cost during the time of allotment and were supposed to pay the remaining 90% of the land cost in installments.
But, The developers are unable to clear their land dues and finish projects, which is causing trouble to thousands of homebuyers. If a builder defaults the installments, then authority levies 12 percent interest on principal amount. Similarly, 1000 individual allottees, who bought industrial and residential plots have also failed to pay their installments on time, thereby becoming defaulters. These individual allottees were given plots on installments basis too.
A public notice has been issued to the builders and the allottees asking them to pay their dues or face legal action. If they will not pay their installments within next 15 days, then authority is going to cancel the allotment of their land
said additional chief executive officer of the Greater Noida authority, Bal Krishan Tripathi.
Greater Noida authority is struggling to recover about Rs. 4,346 crore dues from the developers alone.
GNIDA is yet to recover more than Rs. 7200 crore from its allottees, including builders and individuals, who bought industrial, residential, commercial or institutional property from the government.
“Developers say that there is an all time slowdown in the real estate market. Therefore, there are hardly any buyers for flats or shops. As a result of which, they are unable to raise the money and pay the dues,” said an authority official. Right now, around 203 residential projects are going on in Greater Noida. Out of which, 82 developers have not given their action plan for the completion of their respective residential projects to the authority.